Why American Airlines is clipping its expansion plans
DALLAS -- American Airlines (AAL) is scaling back plans for more flying this year amid signs that average fares are declining.
Wall Street analysts have been urging the airlines to limit growth plans to prevent fares from falling. It's unclear whether airlines would continue to talk about their capacity plans after last week, when the U.S. Department of Justice began investigating possible collusion among the carriers.
Fort Worth-based American said Friday that it expects to increase passenger-carrying capacity by 1 percent this year, down from an earlier forecast of 2 percent.
American, the world's largest airline operator, said its U.S. capacity will rise 1 to 2 percent. International capacity will rise about 1 percent compared with 2014.
American offered the update in a regulatory filing Friday along with releasing details of its June operations.