Global

“The situation is desperate… Airlines are struggling for survival and massive changes are needed,”  warned Giovanni Bisignanni, director general of the International Air Transport Association (IATA) in June. Sky-rocketing fuel prices, slowing demand and increased competition are putting pressure on airlines worldwide, especially those with aging fleets, little or no fuel hedging and small cash reserves. Among the hardest hit, U.S. carriers have responded with capacity cuts and pricing changes that are likely to spread to other regions in time. This article examines these changes and discusses the implications for the corporate travel program.