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An American Airlines Boeing 737-800, equipped with a radar altimeter that may conflict with telecommunications 5G technology, is seen flying 500 feet above the ground during its final approach to landing at LaGuardia Airport in New York City, New York, USA, January 6, 2022.

The leaders of the nation’s biggest airlines learned a tough lesson this summer: it’s easier to plan than to stick to it.

The three biggest U.S. airlines — Delta, United and America — are twisting their aviation growth ambitions, seeking to fly more reliably after biting off more than they can chew this year as they chase an unprecedented rebound on the road, despite a number of logistical challenges. and supply chain constraints and staff shortages.

The cuts come as airlines face high costs for which they are not seeing significant easing just yet, along with a possible economic slowdown and questions about spending by some of the country’s biggest corporate travelers.

Building buffers

United Airlines expects to recover 89% of its 2019 capacity level in the third quarter, and about 90% in the fourth quarter. Read also : The US Air Travel Industry Wounds Itself. By 2023, he will increase his schedule to no more than 8% above 2019, down from previous estimates that he will fly 20% more than in 2019, before the Covid-19 pandemic journey.

“We will essentially continue to fly the same number as we currently are, which is less than we would like, but not develop the airline until we can see evidence that the entire system can support it,” United CEO Scott Kirby said in a statement. interview with CNBC’s “Fast Money” after reporting Wednesday’s results. “We’re just building more buffers into the system so we have more opportunities to accommodate those customers.”

American Airlines CEO Robert Isom also spoke of “buffering” after reporting record earnings on Thursday. The carrier was more aggressive than Delta and United in restoring capacity but said it would fly 90%-92% of 2019 capacity in the third quarter.

“We continue to invest in our operations to ensure we meet our reliability goals and deliver to our customers,” Isom wrote in a staff note, discussing the airline’s performance. “As we look into the rest of the year, we have taken proactive steps to build additional buffers into our schedule and will continue to limit the resource capacity we have and the operating conditions we face.”

American canceled 1,175 flights in July and August, according to a message Wednesday to pilots from their union, the Allied Pilots Association. The airline has already cut about 1% of its planned August schedule, an American Airlines spokesperson told CNBC.

Delta, for its part, apologized to customers for a spate of flight cancellations and disruptions and said last week it said it would limit growth this year. It previously announced it would cut its summer schedule.

On Wednesday, Delta deposited 10,000 miles into the accounts of SkyMiles members whose flights were canceled or delayed by more than three hours between May 1 and the first week of July.

“While we can’t recover lost time or the anxiety caused, we automatically deposit 10,000 miles into your SkyMiles account as a commitment to do better for you in the future and restore the Delta Difference you know we can do,” he said. email to subscribers, a copy of which was seen by CNBC.

By slashing schedules, airlines can keep fares fixed at sky-high levels, a critical factor to their bottom line as costs remain high, although that’s bad news for travellers.

“The more airlines limit capacity, the higher the fares they can charge,” said Henry Harteveldt, founder of the Atmosphere Research Group and former airline executive.

Maintaining the bottom line is key with the economic uncertainty ahead.

“They won’t get another bailout,” Harteveldt said. “They have squandered much of their goodwill.”

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More disruptions, higher revenue

Since May 27, Friday Memorial Day weekend, 2.2% of flights by US-based carriers have been canceled and nearly 22% delayed, according to flight tracker FlightAware. To see also : The Kingdom of Saudi Arabia signs the Artemis – United States Department of State Agreements. That’s up from 1.9% of canceled flights and 18.2% delayed in the same period in 2019.

Staff shortages have exacerbated routine problems that airlines already face, such as thunderstorms in the spring and summer, leaving thousands of travelers in dire straits because carriers don’t have a back-up staff.

Airlines receive $54 billion in federal payroll aid that prohibits layoffs, but many of them are unemployed pilots and are urging staff to pick up purchases to cut costs during the depths of the pandemic.

Airport staff shortages in major European hubs have also led to flight cancellations and capacity limits. London Heathrow officials last week told carriers they needed to limit the capacity of departing passengers, forcing some airlines to cut flights.

“We told Heathrow how many passengers we were going to have. Heathrow was basically telling us: ‘You guys are smoking,'” United CEO Kirby said Wednesday. “They don’t hire staff for it.”

A representative for Heathrow did not immediately comment.

However, the three major US airlines all posted profits for the second quarter and were optimistic about strong tourist demand throughout the summer.

For America and United it was their first quarter in the dark since before Covid, without federal payroll support. Revenues for both airlines rose above 2019 levels.

Each operator is projecting a third-quarter profit as consumers continue to fill seats at rates that far exceed 2019 prices.

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