Airlines Predict Passenger Drop During Upcoming Holiday

Posted on August 20, 2008 by LCT Staff - Also by this author - About the author

NEW YORK CITY — Major U.S. airlines will see a 6% drop in passengers during the eight-day Labor Day holiday period as high oil prices continue to roil the industry, the airlines' trade organization predicted on Monday. The Air Transport Association of America (ATA) said that although fuel prices have declined in recent weeks, jet fuel has averaged $160.47 a barrel this summer, 79% higher than last summer's price.

Crude oil has retreated from a record high above $147 a barrel on July 11 to around $114 on Monday, but that compares to roughly $72 this time last year and is still far too high for the struggling U.S. airline industry.

To survive, airlines have been making big cuts in routes, staff and capacity, as well as raising fares and introducing fees for checked bags and other services.

"High energy prices across the economy, rising air fares and airline schedule cuts are the primary drivers of the overall reduction in passenger volumes expected for this (Labor Day) period," the ATA said in a statement.

The ATA forecasts that 16 million passengers will travel globally on U.S. airlines from Aug. 27 through Sept. 3 — a decline of 5.7% from the same period last year.

The ATA predicted a 6.5% drop in domestic travel and a 1% increase in international travel over the Labor Day period.

"Economic uncertainty and the heavy hit from sky-high energy prices mean that many vacation and business travelers are choosing to stay closer to home — if they go at all," said ATA chief executive James May.

ATA airline members and their affiliates transport more than 90% of all U.S. airline passenger and cargo traffic.

Source: Reuters

View comments or post a comment on this story. (0 Comments)

More News

NLA Supports, Celebrates Charities At LCT East

Early bird and group discounts end today, so don’t miss your chance to attend this event at the show!

Attention To Detail Sets California Operator Apart

WebXclusive: Millennial operator Aaron Schiff of Ascot Limousine uses his talents to maintain the stellar reputation of his godfather’s company.

Uber's Creepy Drones And Drivers

TNC Travesties Of The Week: The company's marketing techniques prove to be just as aggressive as their independent contractors. 

70 Defining Moments In Luxury Industry History

From the 1970s to the present, check out these incredible events that affect the wider luxury services and products sector. 

Do You Provide Customer Service Or Experience?

Companies may be tempted to stick with the former, but clients can almost immediately notice when the focus isn’t on the latter.

See More News

Facebook Comments ()

Comments (0)

Post a Comment



See More

See More

See More

See More

LCT Store

LCT Magazine - October 2016 $12.95 COVER STORY: * Leverage Tech To Levitate Your Operations * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close