Major airlines will see a six percent drop in passengers over the Labor Day holiday, according to a prediction by the Air Transport Association of America (ATA). They say it is due to high oil prices, among other factors.
Although crude oil prices have dropped recently, fuel prices, at their peak, were averaging $160.47, which is 79 percent higher than last summer. Even at Monday’s price of $114, it’s still too high for the airline industry. As a result, airlines have been cutting back on routes, staffing, capacity, and introducing fees for checked bags and other amenities.
The combination of higher energy prices, rising airfares and schedule cuts are causing the drop in travel, according to the ATA. It is forecasting that globally, 16 million passengers will travel during the period of August 27 through September 3, a decline of 5.7 percent from the same time frame last year.
The ATA is also predicting a 6.5 percent drop in domestic travel and an increase of 1 percent increase in international travel over the Labor Day period.
Coupled with the drop in miles driven, more and more Americans may be opting for a staycation.
