Tuesday, March 22, 2011; 6:16 PM
Airlines whipsawed by costly fuel, Japan disaster
DALLAS (AP) - Already struggling with high fuel prices, the big U.S. airlines now face a drop in demand for flights to Japan, a lucrative route and gateway for travel to Asia.
The airlines' response: They're raising fares and eliminating unprofitable flights.
Delta Air Lines Inc. said Tuesday that it will reduce flying to Japan by up to 20 percent through May because of falling demand as the country recovers from the March 11 earthquake and tsunami. Delta said the cuts will cost it $250 million to $400 million in lost profit.
Delta will also reduce flying across the Atlantic and within the United States in the second half of this year. It won't grow as much as planned in Latin America and the Pacific.
American Airlines said Tuesday that it suffered "a modest decline" in revenue from the disruption of travel to Japan and bad weather at home. Still, American plans to push ahead with its joint venture with Japan Airlines next month.
United and Continental announced Monday that they too will slow their plans for adding international flights and make deeper cuts in the U.S.
Fed says 2010 payment to government sets record
WASHINGTON (AP) - The Federal Reserve is paying a record $79.3 billion to the U.S. government after the central bank earned a record amount of money last year from programs aimed at boosting the economy.
The Fed says its payment to the Treasury Department for 2010 is 67 percent higher than $47.4 billion it paid in 2009, the previous record.