Quantcast
Transport Airlines

Why U.S. Travelers Are Dealing with Higher Fares, Fuller Planes This Summer

Skift Take

Airlines are looking to optimize their profits by flying fewer and smaller planes until demand increase; however, an expensive, crowded experience is a poor way to encourage air travel.

— Samantha Shankman

Air travelers are paying more to fly this summer on crowded planes as carriers including American Airlines Group Inc. keep capacity tight, conditions passengers will have to get used to beyond the vacation period.

Carriers are offering fewer flights, have dropped routes to certain cities and in some cases are flying smaller planes on trips in the U.S. amid strong demand, helping to boost summer fares 4.5 percent from a year ago.

An average domestic round trip fare has climbed to about $399.48, based on data from Travelocity.com. An international ticket is about 2.3 percent more than a year ago, at $991.82.

This is the busiest season for U.S. carriers, with passenger traffic at its heaviest in July, followed by August, then June, according to data compiled by Bloomberg. Airlines for America, an industry trade group, forecast that travel on U.S. carriers this summer will be the highest in six years. But don’t expect seats to open up or fares to fall much once summer ends.

“Unless and until we see meaningful expansion among existing airlines or new competitors successfully launch service, we will continue to see airfares increase and flights remain crowded,” said Henry Harteveldt, a travel industry analyst and founder of Atmosphere Research Group in San Francisco.

About 210 million passengers, or 2.28 million a day, will travel on U.S. airlines from June 1 to Aug. 31, Airlines for America said. That’s up 1.5 percent from 2013. More Americans will also hit the road over the five days around the 4th of July holiday –34.8 million, according to AAA, the biggest U.S. motoring organization, up 2 percent from last year.

“For people who want to travel long distances reasonably quickly, air travel is really the only viable option,” in the U.S., which lacks an extensive high-speed rail network, Harteveldt said.

To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net Molly Schuetz, John Lear.

More Stories Below ▼
Daily Travel Startup Watch: GapDoc, Xenos Local and More
Free Report: What Millennials Want in Meetings
This Week in Travel Startup Funding: Silvercar, Pana and More
Video: How Amsterdam is Rethinking Urban User Experience to Build the City of the Future

Video: How Amsterdam is Rethinking Urban User Experience to Build the City of the Future

Skift Business Traveler: Uber and Lyft Infiltrate American Airports
The Vacation Rental Technology Ecosystem
Trend Report

The Vacation Rental Technology Ecosystem