From TwinCities.com

From TwinCities.com. This is an interesting overview of all the announcements that came out last week regarding capacity and fee changes that major US airlines have announced.

The reshaping of the nation's airline industry continued Thursday as three big airlines announced major moves, including job cuts, service reductions and even cans of soda at $2 a pop in coach.

Among the carriers making moves:

# US Airways said it would cut domestic flights, shrink the size of its fleet, slash 1,700 jobs, and match a move by American Airlines to charge passengers to check their first bag.

"We must write a new playbook for running a profitable airline in this new and challenging environment," US Airways Chairman and Chief Executive Doug Parker said in a statement.

Fliers now will pay $15 to stow one bag in the cargo hold for tickets booked on or after July 9. Higher fees are assessed for additional checked bags.

And free drinks in coach are on their way out too. Passengers in the back soon will be charged $2 per nonalcoholic drink starting Aug. 1.

In addition, US Airways plans to cut domestic mainline capacity 6 percent to 8 percent in the fourth quarter. It also is returning 10 planes, canceling leases on two more and planning to park more through 2010.

Tempe, Ariz.-based US Airways' fuel costs are up almost $2 billion this year.

# Travelers in Cleveland and Houston will be hit hardest when Continental Airlines starts cutting flights later this year in its fight against record fuel costs.

In a message to employees made public Thursday, the carrier said it will stop flying to 15 destinations and reduce
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service in several other markets as it sheds about 11 percent of mainline capacity starting in September.

Some of the cutbacks — timed to occur when travel normally drops off at summer's end — mean flights will be eliminated altogether. In other cases, Continental will swap smaller planes for larger ones.

Houston-based Continental will stop flying to Oakland, Calif.; Bali, Indonesia; Cologne, Germany; and Reno, Nev.

# United Airlines also announced it would tack the $15 fee on initial checked bags. Most U.S. carriers already have instituted a $25 charge for checking a second bag, part of a potpourri of new fees that reflect a struggling airline industry passing along record fuel prices to passengers in the form of higher fares, fuel surcharges and service charges.

As of July 1, Southwest Airlines will be the only U.S. carrier that permits two checked bags for free, according to air travel expert Tom Parsons, who expects still more service fees to come.

Eagan-based Northwest Airlines, meanwhile, has said previously it plans to cut some domestic flying this fall but has not said whether it will match the $15 bag fee.

Also Thursday, Northwest and US Air became the final two larger U.S. carriers to get on board with a $20 fuel surcharge.

American Airlines put the surcharge in place Wednesday, according to Farecompare.com, which monitors airfares. United and Continental matched it that night, and Delta Air Lines joined in Thursday morning. Once all six of the largest carriers adopt an increase, it's considered likely to stick.

Reports from staff writer John Welbes were used in this story.