American Airlines Flying Less This Year (AMR)

As a result of higher fuel prices, American Airlines AMR said it will fly less than previously expected, despite a rise in travel demand. If other airlines copy suit, pricing power would come back to the industry. The airlines have already raised fares a few times this year, as higher jet fuel prices continue to climb and hamper profits. American announced that the winter storms cost the airline $50 million, as it canceled thousands of flights across the country. "In light of the current environment, in particular recent fuel price trends, we are trimming back our capacity plan for 2011," said company spokesman Andrew Backover. At last check, shares of AMR were off 20 cents to $6.54, a loss of nearly 3%.