Rising airfares to slow Labor Day holiday travel

Posted by stephen on August 19, 2008

Passenger traffic on U.S. airlines for the 2008 Labor Day holiday travel period is expected to be 16 million passengers, a new report from the Air Transport Association (ATA) says. This is 5.7 percent down from the 17 million passengers estimated to have traveled during the same period last year.

The industry trade organization blames the expected decline on high energy prices, the rising airfares and airline schedule cuts.

The ATA says although there has been a recent and welcomed drop in fuel prices so far this summer, jet fuel has averaged $160.47 per barrel, up 79 percent from the $89.92 price last year.

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