Air Transport Assn. sees fewer fliers, but packed planes, for summer
The carriers plan to lower carrying capacity to help offset fuel costs, says the trade group.
WASHINGTON --
Fewer Americans are expected to fly this summer, but don't expect more empty seats as carriers pack planes to help offset surging fuel costs.
The trade group for the nation's largest airlines Tuesday forecast 211.5 million passengers will travel on domestic carriers from June 1 to Aug. 31. That would be a 1.3% drop from last summer.
Airlines are reducing their carrying capacity amid slower economic growth and rising jet fuel prices, the Air Transport Assn. said.
But planes will be nearly 85% full and delays emanating from New York-area airports will remain a problem, ATA Chief Executive James May said. Some large U.S. carriers last week again raised ticket prices to offset surging fuel costs. Still, May said further fare hikes this summer were inevitable.
Rick Seaney, chief executive of airfare research site FareCompare.com, does not share the view of analysts who say we've hit the "tipping point" on fare hikes -- 11 of 15 attempts have been successful this year. But the trade group's summer forecast and an unusual move by Delta Air Lines in recent days suggest an end to the increases may not just be wishful thinking.
Delta last week raised fares by $20 round trip as a fuel surcharge, and its five largest competitors quickly followed suit. But on Sunday, the Atlanta-based carrier rolled back almost half of the increases, largely on flights that service its home city where competition is fierce.
The trade group for the nation's largest airlines Tuesday forecast 211.5 million passengers will travel on domestic carriers from June 1 to Aug. 31. That would be a 1.3% drop from last summer.
Airlines are reducing their carrying capacity amid slower economic growth and rising jet fuel prices, the Air Transport Assn. said.
But planes will be nearly 85% full and delays emanating from New York-area airports will remain a problem, ATA Chief Executive James May said. Some large U.S. carriers last week again raised ticket prices to offset surging fuel costs. Still, May said further fare hikes this summer were inevitable.
Rick Seaney, chief executive of airfare research site FareCompare.com, does not share the view of analysts who say we've hit the "tipping point" on fare hikes -- 11 of 15 attempts have been successful this year. But the trade group's summer forecast and an unusual move by Delta Air Lines in recent days suggest an end to the increases may not just be wishful thinking.
Delta last week raised fares by $20 round trip as a fuel surcharge, and its five largest competitors quickly followed suit. But on Sunday, the Atlanta-based carrier rolled back almost half of the increases, largely on flights that service its home city where competition is fierce.
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