Steve Robinson

Planes Flying Fuller than Ever

Cheap airplane tickets and cheap vacation packages have become harder to find as flights are increasingly taking off with few, if any, empty seats.

86.4 percent of all airline seats were filled by paying customers in July and August, a slight increase in last summer’s previous record of 86.3 percent.  When you consider how many people flew using frequent flier miles, as well as seats taken by off-duty airline staff which usually fly free, empty plane seats were few and far between.

Experts expect airline occupancy rates may decline slightly this fall if the economy continues to slow.  Regardless, flights around the Thanksgiving, Christmas, and New Year holidays are expected to be packed.

An airline’s occupancy rate plays a key role in its profitability.  Airlines have to raise enough money from their ticket prices and fees to pay their fuel and labor costs.

Every major U.S. airline has made a profit year to date except for American Airlines.  American was also the only major U.S. airline to lose money in 2010.

United’s ticket prices were approximately 8 percent higher than they were in July of last year and 11 percent more in August.

Demand for airline tickets tends to peak over the summer then dip in the fall before rising as the end of year holidays approach.  The airlines are expected to reduce available seats in the U.S. by approximately 2 percent this fall.

Profitable international flights, which account for a smaller number of airline routes, are forecasted to increase between 3 to 5 percent.

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