Description: U.S. carriers led by United Continental Holdings Inc. (UAL) are shielding their lucrative trans- Atlantic business from the worst of Europe’s economic slump, after shrinking the supply of seats to support higher fares.

Source: Bloomberg.com

Date: June 28, 2012

Link: http://www.bloomberg.com/news/2012-06-28/airlines-lift-u-s-to-europe-fares-by-paring-seats.html

Questions for Discussions:

• How have airlines planned and adjusted to market conditions?
• How will this affect cash flow and budgetary concerns?