Economic troubles expected to hit Labor Day holiday passenger numbers

Airline Industry Information, August 19, 2008

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The Air Transport Association of America (ATA), an industry trade organisation for US airlines, has said that it expects fewer people to fly during the Labor Day holiday period this year.

ATA published a forecast on 19 August claiming that the number of passengers expected to travel globally on US airlines during the eight days between 27 August and 3 September will be 5.7% down on the same holiday period last year.

ATA projects that 16 million passengers will fly on US carriers during the period, down from 17 million in 2007, with a 6.5% drop in domestic travel and a 1.0% increase in international travel. Sustained high fuel costs are reportedly a significant reason for the reduction, with airlines reducing seat supply. High fuel costs are also negatively impacting customers' spending power.

Jet fuel has averaged USD160.47 per barrel in the period 1 June to 12 August this year, which represents a drop from prices earlier in the year but is still a 79% increase in fuel costs compared with the same period last year.

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