SF Gate: Six major airlines anticipate growth in 2004

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Sunday, November 30, 2003 (AP)
Six major airlines anticipate growth in 2004



   (11-30) 13:58 PST FORT WORTH, Texas (AP) --
   After two dismal years, the nation's six largest carriers are expected to
increase seating capacity by as much as 4 percent next year, analysts
said.
   Fort Worth-based American Airlines will experience some of the most
aggressive growth. The airline expects to increase its capacity by 7
percent in 2004, despite removing 57 aircraft from its fleet.
   The growth will extend to the carrier's mainline routes and its American
Eagle regional subsidiary, airline officials said.
   Economic improvements, competition against low-fare rivals, and increased
international traffic are creating the new growth, the Fort Worth
Star-Telegram reported in its Sunday editions.
   The expansion could spark more competition, which analysts say could put
fares at the lowest in decades.
   The potential fare reduction, while good for passengers, is a concern to
airlines.
   "This kind of growth is going to assure that =0B[airfares=0B] are mainta=
ined
at their present, unsatisfactory levels," said Morton Beyer, an airline
industry analyst and consultant at the Morton Beyer & Agnew consulting
firm in Arlington, Va. "I don't see much relief coming in that area."
   While major airlines will grow anywhere from 2 percent to 4 percent next
year, analysts say low-fare airlines, such as Dallas-based Southwest
Airlines, could expand more than 10 percent next year.
   Small regional airlines will probably grow more than 30 percent, they
said.
   It's a major change from the days after Sept. 11, 2001, when major
airlines slashed their networks by as much as 20 percent and ordered
unprecedented staff layoffs.
   American -- the world's largest airline -- plans to create growth by
scaling back the "More Room Throughout Coach" program and by adding seats
on a fourth of its fleet. More international flights also will be added.
   In addition, it will shift flights from its St. Louis hub to Dallas/Fort
Worth Airport and Chicago and streamline hub schedules, which means planes
will spend more hours in the air. The moves add capacity without adding
aircraft, said Henry Joyner, American's vice president for planning.

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Copyright 2003 AP

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