Airlines' woes will cause 'rough summer' for travelers

INDUSTRY 'IN TROUBLE' | Higher fares may lead to reduced schedules, crowded planes

For travelers, a vacation season of jammed planes, delayed flights and higher fares looms in what's shaping up as the worst of times for both airlines and their customers.

''It's going to be a rough summer,'' said Terry Trippler, a Minneapolis-based travel expert. ''It's going to be one where you've got to plan another day into your travel schedule'' just to prepare for schedule chaos.

Months of rising concerns about the consequences of higher fuel prices jumped to new levels of anxiety among investors as United reported its huge loss, and oil prices jumped again. In addition, Delta Air Lines Inc. CEO Richard Anderson said domestic carriers would need to raise fares by 15 to 20 percent just to break even.

With weaker demand because of the economy, cutbacks in corporate travel and likely ''sticker shock'' among consumers, it's not clear whether the airlines can accomplish such increases. Airlines have already succeeded in raising ticket prices eight times this year across most of their route networks, with four other attempts rolled back after competitors refused to join in.

Anderson said higher fares would likely diminish demand for air travel, and prompt carriers to further reduce their schedules.

''We've got an industry that's in trouble,'' said Vaughn Cordle, chief executive and chief analyst at AirlineForecasts in Washington. ''If oil prices stay anywhere near $100, $120 for the year . . . we'll have a massive restructuring of the airline industry.''

AP