Grumpy
04-02-2009, 06:38 AM
http://www.bizjournals.com/wichita/stories/2009/03/30/daily25.html
The Federal Aviation Administration reports that the number of travelers boarding U.S. airliners is expected to plunge by 7.8 percent this year.
The new FAA report shows major airlines are expected to bear the brunt of the decline, with a projected 8.8 percent drop that would return them to passenger levels last seen in 1995.
Regional airlines will see business drop 4.5 percent, taking them back to volumes of four or five years ago, while air cargo is expected to slide 2.8 percent.
With Americans cutting back on spending, airlines have cut back on capacity. Travelers are benefiting from lower prices now, but as airlines continue to make cuts, the deals are not expected to last in the long term.
In 2008, the FAA predicted the number of airline passengers would surpass the 1 billion-per-year mark in 2016. Now that landmark won’t be reached until 2021, the FAA said.
The Federal Aviation Administration reports that the number of travelers boarding U.S. airliners is expected to plunge by 7.8 percent this year.
The new FAA report shows major airlines are expected to bear the brunt of the decline, with a projected 8.8 percent drop that would return them to passenger levels last seen in 1995.
Regional airlines will see business drop 4.5 percent, taking them back to volumes of four or five years ago, while air cargo is expected to slide 2.8 percent.
With Americans cutting back on spending, airlines have cut back on capacity. Travelers are benefiting from lower prices now, but as airlines continue to make cuts, the deals are not expected to last in the long term.
In 2008, the FAA predicted the number of airline passengers would surpass the 1 billion-per-year mark in 2016. Now that landmark won’t be reached until 2021, the FAA said.