Decline in air passengers is estimated during Labor Day holiday period
Industry trade organization for the foremost U.S. airlines The Air Transport Association of America estimated that during the 2008 Labor Day holiday period16 million traveler will travel internationally on U.S. airlines. During the similar period last year17 million passengers expected to have traveled on U.S. airlines. This year estimate show 5.7 percent decline from last year estimation. The Labor Holiday period span Aug. 27 through Sept. 3.
Global increase in energy prices, mounting airfares and restricted airline schedule are the major factors behind this overall fall in passenger size. A 6.5 percent fall in domestic travel and a 1.0 percent increase in international travel are the constituents of the projected decline. Consistent fuel cost caused the reduction in seats available for domestic flights by the airlines that are forced to trim down services as well as increased fuel price trim down the size of customer’s spending potential.
President and CEO James C. May stated that airplanes are expected to be less crowded and less full.
Jet fuel was at $89.82 a year ago while this year jet fuel has averaged $160.47 per barrel which shows an increase of 79 percent however the there has been a current and greeting drop in fuel prices so far this summer.
