DOW JONES NEWSWIRES 
 

U.S. airlines carried 11% fewer passengers in January than they did a year earlier, according to the Department of Transportation, on a similar decline in flights flown.

Airlines have been cutting capacity in recent months, first in response to record fuel prices last year, but the industry has since been struggling with slumping demand, prompting projections companies will have to cut more capacity.

The DOT's Bureau of Transportation Statistics said airlines had 12% fewer domestic passengers and 7.2% fewer international passengers. Average load factor, or the amount of seats filled, was 73%, down 0.9 percentage point.

Southwest Airlines Inc. (LUV) carried the most total domestic passengers in January, with 7 million, while AMR Corp.'s (AMR) American Airlines carried the most international passengers.

The news comes just after Southwest reported it swung to a third-straight loss in the first quarter on fuel-hedging losses and a drop in demand. The company also gave a gloomy outlook. AMR, meanwhile, Wednesday posted a wider loss on falling revenue and a steep drop in demand.

Atlanta Hartsfield-Jackson International airport led in total and domestic passengers in January, while Miami International led in international passengers.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com