Fewer flights, higher fares By Aaron Smith FROM CNN Money.com

NEW YORK (CNNMoney.com) -- As oil prices continue to break records, the nation's six leading airlines have announced capacity cuts for 2008, trimming flights in major hubs and cutting off service to dozens of discount destinations.

All told, the industry will cut capacity by 9% in 2008, according to James Higgins, analyst for Soleil-Solebury Research.

Experts are also expecting more fare increases. Tom Parsons, travel pricing expert at BestFares.com, said airlines have imposed about a dozen fare increases or fuel surcharges since the end of last year.