US Labor Day air travel to drop on fuel cost - ATA

18 August 2008 17:40  [Source: ICIS news]

HOUSTON (ICIS news)--The number of US airline passengers travelling during this year’s Labor Day holiday will drop 5.7% from last year’s total as a result of higher jet fuel costs and other factors, the Air Transport Association (ATA) said on Monday.

The industry trade group for major US airlines forecasts that roughly 16m passengers will travel globally on US airlines during the Labor Day holiday period from 27 August through 3 September.

This figure is a 5.7% decline from the 17m passengers estimated to have travelled on US airlines during the same period last year, according to the trade group.

“We expect airplanes to be less full and skies to be less crowded this Labor Day holiday,” said ATA president James C May.

As a result of high fuel costs, rising airfares and airline schedule cuts will drive the reduction in passenger volumes expected for this period, the ATA said.

“Sustained triple-digit fuel costs not only have forced airlines to cut back service - resulting in fewer seats available for domestic flights - but they also have taken a toll on customers’ spending power,” the ATA said.

According to the ATA, jet fuel costs have increased 79% from last year.

Despite the 6.5% predicted drop in domestic travel, the ATA forecasts a 1% rise in international travel on US airlines.

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By: Steven McGinn
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