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Eliminated flights leave business travelers on road

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Bloomberg News / July 6, 2008

Jim Sachs, president of Puroast Coffee, the seller of low-acid coffee to grocery chains, is tacking on 90 extra miles to every business trip he takes to and from his home in Sacramento.

"I am now driving to San Jose or San Francisco because Continental has reduced flights and there are no other decent alternatives out of Sacramento," Sachs said. "I have seen a 150 percent increase in ticket prices over the past 60 days and because of decreased capacity, if you miss a flight, you might not be able to make it home for two days."

AMR Corp.'s American Airlines and Continental Airlines Inc. are among carriers scaling back services and cutting routes as jet-fuel prices climbed almost 100 percent in the past year, according to Bloomberg data. Weather delays, which increase during the US summer because of thunderstorms, promise more time spent on the ground rather than in client meetings for people like Sachs, who travels 125,000 to 150,000 miles a year.

Business travelers account for 50 percent of airlines' revenue and 30 percent of passenger traffic, said Kevin Mitchell, the founder of Business Travel Coalition Inc. in Radnor, Pa., which represents business travelers.

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