Rob Banks
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US Airlines Increase Capacity Instead of Aircrafts To Meet Demand

As flight demands increase through the years, airlines must do whatever it takes to accommodate the ever-growing needs.  There are many different ways to expand and serve the client base, but what are the US airlines doing?  Delta commented that their strategy involves up-gauging, which happens to be lessening their volume but expanding their airplanes.  Yes, they could just add more aircrafts to their fleet, but that would raise volume and gas expenses considerably.  By keeping the same amount of flights, but making them bigger, they can address the increasing flight demands while keeping their gas expenses controlled.

As of this year, their capacity went up 2.6 percent but their expenses only went up 2 percent.  That means, $81 million less in gas expenses from them.  Not only that, Delta's per-gallon price is only $2.97, the lowest of most airlines.  In the 3rd quarter, they had about $67 million in gains.  Ever since, it appears that other major US airlines are also making similar moves increasing the capacities of their aircrafts as well.