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Expect fuller planes and higher air fares in second half

Post by John Gillie / The News Tribune on Aug. 29, 2012 at 3:42 pm with No Comments »
August 29, 2012 3:42 pm

Domestic airlines are cutting back unprofitable flying in the second half of 2012, a new report says, raising revenues and resulting in fuller planes in the coming months.

That report from air travel consultants the Boyd Group International, said airlines will offer seven million fewer seats and three percent fewer departures in the last six months of 2012.

That tightening up of capacity is expected to help air carriers cope with rising fuel costs and other expenses by maximizing revenues per trip.

“The fact is that some portions of today’s air traffic is no longer cost-compensatory — a situation that is permanent,” the forecast said. “The outcome will be a US air transportation system that actually will provide stronger global air access focused at fewer airports, both hubsite and non-hubsite.”

International flying is playing a bigger role in the domestic aviation industry, the report said. By 2017, some 27 percent of all trips originating or ending in the U.S. will involve at least one segment of international travel, the report said.

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