Fewer passengers are expected to travel during the US Labor Day holiday this year than in 2007 due to energy prices, rising airfare and capacity cuts,
Sixteen million passengers are expected to fly between 27 August and 3 September, down 5.7% from the 17 million who travelled for the period last year, according to forecasts from the Air Transport Association of America (ATA).
The projected decline accounts for a 6.5% drop in domestic travel and a 1% increase in international travel. "We expect airplanes to be less full and skies to be less crowded this Labor Day holiday.
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," ATA president and CEO James May says in a statement.
While jet fuel costs have dropped recently, prices averaged $160.47 per barrel between 1 June and 12 August, a 79% increase from $89.82 per barrel in the prior-year period.
ATA says it continues to urge the US Congress to craft a comprehensive, balanced national energy policy. Earlier in the summer, proposed legislation to regulate oil speculation trading failed to pass in the US House of Representatives to the dismay of ATA.
The association launched a campaign along with other organizations dubbed SOS (stop oil speculation now) in an attempt to convince US legislators that traders buying oil without the intent of ever using the commodity is one factor driving prices to record levels.
Source: Air Transport Intelligence news