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American Airlines Reduces Capacity Plans

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American Airlines parent AMR reduced its capacity plans for 2008, as oil prices hover near record levels and the softening US economy threatens to sap travel demand.

The world's largest carrier plans to increase capacity at its mainline operations by 0.2 percent this year, according to a filing with the US Securities and Exchange Commission on Wednesday.

That is down from a forecast for a 1.0 percent increase on January 16.

The new 2008 plans call for a 1.1 percent reduction in domestic capacity and a 2.5 percent increase in international capacity.

Previously, the company planned for a 0.4 percent reduction in domestic capacity and a 3.3 percent increase in international capacity this year.

In the first quarter, American is likewise slowing capacity, forecasting a dip of 0.6 percent compared with its previous forecast of a 0.9 percent increase.

(Reuters)

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