• Wall Street Journal, Friday, December 24, 2010 9:49 AM

More low-cost airlines are beefing up flights to the islands and that is putting pressure on fares. Average one-way fares on eight routes from the U.S. fell on all but one between the second quarter of 2007 and the same period this year.

The market's longtime leader, American, is cutting back its San Juan, Puerto Rico, hub as part of a network revamp designed to improve revenue and profits. Expansion of discounters in the region has hurt American's results, says Peter Dolara, an American senior vice president. "You can't have more flights where you lose money," he says.

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