Higher-yield haven

The economic reasons why the biggest U.S. airlines such as American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines, United Airlines and US Airways are increasing their international capacity are discussed. Pricing power is identified as the main reason. The shift from domestic to international services has been underway since the start of 2004 and can be seen in the Air Transport Association (ATA) tables of available seat miles in international service. The trend is expected to continue. Domestic overcapacity is driving down fares and domestic yields have decreased every year since 2001. US network airlines have reduced their costs significantly, with labour groups accounting for most of the savings. Fuel costs are a factor in profit and airline survival.