CONTINENTAL AIRLINES
Continental today announced significant, temporary reductions in capacity to Mexico, effective May 4, 2009, in response to lower demand. Initially, for the month of May, the company has reduced capacity to Mexico as measured by available seat miles (ASMs) by approximately 50 percent, compared to its original May 2009 flight schedule. Flight departures have been reduced by approximately 40 percent. These reductions constitute approximately 2.0 percent of Continental's system wide ASMs for May 2009 compared to its original May 2009 flight schedule. Reductions are being implemented by using smaller aircraft on flights to Mexico or by reducing the frequency of flights to any one destination. Prior to these reductions, Continental operated an average of 450 weekly flights to the country.
"Given the swift changes we are seeing in the marketplace, we need to react prudently but quickly to bring our capacity more into line with demand," said Larry Kellner, chairman and chief executive officer. "We were already experiencing soft market conditions due to the economy, and now our Mexico routes in particular have extra weakness. Our plan going forward will be to continue to monitor demand levels we are seeing and adjust our capacity and costs accordingly."
Continental continues to serve all 29 of its destinations in Mexico, and customers are assured that return travel from Mexico remains available, although schedules and routings may change.
Continental is notifying affected customers about options for re-accommodation on different flights as close as possible in time to their original flights. In addition, the company extended its waiver policy for customers traveling to Mexico, allowing them to change their itinerary without penalty through May 31, 2009.
UNITED AIRLINES
United Airlines today announced a temporary reduction in the number of weekly flights between Mexico and the United States.
United, which has less than 2 percent of its consolidated capacity dedicated to Mexico, will, beginning May 5, reduce the amount of its weekly roundtrip flights between the US and Mexico from 61 to 24 in May and from 90 to 52 in June. United will continue to serve all four of its year-round destinations in Mexico, including Cancun, Los Cabos, Mexico City, and Puerto Vallarta.
"We are responding quickly, adjusting our schedule to match customer interest," said John Tague, executive vice president and chief operating officer. "We will continue to monitor demand for travel to Mexico and will adjust our flight schedule accordingly."
United are notifying customers and travel agencies of the changes to its schedule and is re-accommodating customers on other flights. United has issued a travel waiver enabling customers to more easily change their travel plans for travel to, from and through Mexico.
(ETN)
