U.S. airlines cut growth plans in a bid to stem profit-eating fare discounts

Indeed, several U.S. airlines have decided to lower their growth plans as an attempt to halt the decline in profits caused by fare discounts. A lower capacity may help airlines to maintain or even increase prices, which in turn could improve their profit margins. The adjustments in growth plans and strategies reflect the competition in this industry, where airlines have been cutting prices to attract customers amidst increasing operational costs.