"I don't think the consumer in D.C. is going to notice much [of a reduction], quite frankly," Skeen said, because the airline is not cutting service to any cities from Dulles.
Flyi's workforce is also being cut -- from 4,300 full-time equivalent positions last fall to 3,350 this spring.
Flyi has five A319 Airbus jets and plans to add seven more by June, despite just-announced changes that include staff and fleet cuts.
(Photo Independence Air)
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"It's across the spectrum," Skeen said of the job cuts. "Now obviously as airplanes go away, it's going to be more . . . pilots than any other groups because they fly the airplanes."
Independence Air had 1,500 pilots last fall; yesterday, it had 1,067, according to company spokesman Rick DeLisi.
The cuts in jobs and aircraft may be Flyi's last chance to save itself in an industry that has been challenged by high fuel prices and low revenue, analysts say.
"They clearly have bought themselves some time. . . a whole year or a year and a half before they may have to worry about these questions again: Are they going to liquidate? Are they going to file Chapter 11?" said Anthony F. Cristello, an analyst who follows low-fare carriers for BB&T Capital Markets.
Analysts say Flyi won't succeed unless it can sell more seats -- and at higher prices. In its latest sale, rolled out yesterday morning, Flyi was offering a $138.80 roundtrip fare, all taxes included, for students willing to travel midweek this spring from Dulles to the West Coast. While Flyi has been selling about half of its seats, Skeen yesterday predicted "load factors" will be in the 62 to 65 percent range in February and be "bumping up to the 70s" in March.
Skeen said the airline plans to cut service to Florida from Knoxville, Tenn.; Columbia, S.C.; Greensboro, N.C.; and Greenville-Spartanburg, S.C. He said the airline has not decided whether it will drop any other markets.
"I mean, it's a challenging environment," Skeen said. "If you talk to virtually every airline there is virtually no one making money these days. Putting that aside, we are bullish."
Flyi plans to report its fourth-quarter earnings on Friday. The company said it expects to report a result slightly better than the one reported in the third quarter, when it lost $82.7 million.
