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May 6, 2008

The First Signs of Softening Demand for Air Travel?

Filed under: Airlines, News — Rick Seaney @ 6:13 pm

Whether due to rising airfare prices or a struggling economy, we’re seeing the first signs of softening demand for air travel. April saw a decrease in air traffic among five of the six legacy carriers, with American experiencing the largest drop from last April (6.6%). While April numbers might be a bit skewed as Easter occurred in March this year, that definitely doesn’t completely account for the overall decline in traffic.

Check out Bloomberg.com for an in depth look at April air travel and insight into how the major airlines performed.

2 Comments »

  1. There’s some interesting conflicting data. I’d say that while discretionary business and personal travel is down, key travel of both types is not. In my article today (http://tinyurl.com/5rxdmd), I referred to Travelocity press release today on strong summer demand.

    Aloha,
    Jeff
    http://beatofhawaii.com

    Comment by beatofhawaii.com — May 6, 2008 @ 8:15 pm

  2. I agree Jeff that the airlines have been guiding Wall Street with news of strong summer bookings, last summer load factors were 90% (the planes were all bascially full). With lack of growth and some pull back in capacity this summer I would expect similar this year. That said a few monthly Year over Year decreases in demand on multiple airlines (especially since YOY 2007 - 2006 wasn’t postive in April for airlines like US Airways) is significant enough to mention.

    Comment by Rick Seaney — May 7, 2008 @ 6:09 am

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