UNITED CONTINENTAL EXPECTED TO CUTS CAPACITY US CITIES

Merged airline United Continental is planning to cut capacity in cities such as Chicago and Denver in its first network adjustments, according the market experts. Analysts have estimated that seats from the combined carrier will decline by 1.9% in the US during the first quarter, while other US airlines will increase capacity by about 2%. The cut will particularly benefit Southwest Airlines which has a large market in Denver. However a spokesperson for United said that rather than cut capacity, the airline plans to increase available seats by as much as 2% in 2011.