Five ways airline capacity cuts will affect you

ByABC News
September 17, 2008, 5:54 PM

— -- You've probably read about the legacy and low-fare airlines making big "capacity cuts" throughout this year, but you may not know how those cuts will affect you. First, let's define the term "capacity cuts." Simply put, when an airline 1) cuts the number of daily flights on a route or 2) replaces a big plane with a smaller one, it reduces the number of available seats, and the airline thereby cuts its capacity.

This year has been rough for airlines and travelers alike. Exorbitant jet fuel prices have led cash-strapped airlines to implement new fees, hike airfares, and yes, cut capacity in efforts to squeeze every last dollar out of the traveling public. Below, I'll outline five ways capacity cuts are likely to affect you, and what (if anything) you can do to reduce the inconvenience they cause you.

1. Flight options dwindle

According to a recent report by the Associated Press, low-cost and legacy carriers plan to cut capacity by anywhere from 5% (Alaska Airlines) to a whopping 16% (United) in the fourth quarter of this year. Even Southwest, the sole airline consistently making a profit, plans to cut 200 flights in 2009, a 6% capacity cut. Many of the other airlines' cuts will be in place by November, just in time for the busy holiday travel season.

The law of supply and demand teaches us that fewer seats will generate more demand among travelers, and more demand will mean less incentive for the airlines to offer cheap fares. Since many people will travel for Thanksgiving and Christmas no matter what the price, you can expect holiday flights to be priced higher than ever.

2. Packed planes

You can also thank capacity cuts for packed planes. Earlier this year, the major airlines' planes generally flew at more than 80% capacity. This fall, you can expect even fuller planes. As anyone who flies coach knows, full planes equal less comfort. Sadly, the days of stretching out with a whole row to yourself appear to be gone.

3. Schedule changes

One of the biggest hassles of capacity cuts is dealing with schedule changes. If you booked well in advance of your trip, you may have already received an e-mail from your airline notifying you about a change in your schedule. If not, an e-mail is probably headed your way soon.