Low-cost carriers are once again being presented with market openings to exploit as the major U.S. airlines scramble to slash service across their networks. But the pickings won't be so easy for the LCCs this time, since most are feeling just as much pain as their legacy brethren. The latest round of airline earnings reports sees the majors making even deeper cuts in their post-summer capacity plans. Less profitable routes are being eliminated, and frequencies reduced elsewhere. These carriers are optimistic that their double-digit capacity cuts will succeed in stimulating dramatic unit revenue gains in the fourth quarter. To some extent, the success of this strategy will depend on the reaction of the LCCs, which are by nature hungry for new opportunities created by the legacy airlines' cutbacks. While they also are paring...
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