US Airways, as part of an overall cost savings program that will eliminate 1000 jobs, has announced that it will reduce the number of flights into Las Vegas by 44 percent. The carrier will also end non-stop service between Las Vegas and ten other cities. With 6500 new hotel rooms set to open by the end of the year, any reduction in passenger traffic will hurt the tourism industry, already strapped as it is. Gaming stocks closed down on the day with the news from US Air.
The Las Vegas area has unemployment rates hovering around 13% and remains one of the hardest hit areas of the country in foreclosures.US Airways Cutting Nearly Half of its Flights to Las Vegas, Eliminating Jobs by Harrison Barnes