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For U.S. travelers, more packed planes, but more free flight vouchers |
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| Aug 25, 2008 01:42 PM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: Forecasts, Consumer experience  There's a downside and an upside to the new air travel reality in the United States.The downside: look for more, packed flights as airlines reduce fleets to cut costs by eliminating unprofitable flights, and with it the (remaining) empty seats on planes, The New York Times reported. The upside: airlines are required to offer a greater payout, if you're bumped from a flight. Airlines' load factor seen increasing Stock analyst and frequent flier C. Leonard Bauer told BloggingStocks U.S. airlines' load factor - - the percent of seats sold per flight - - is likely to increase from its current 79% sector average. "Basic math. Considerably fewer planes and roughly the same amount of travelers means more flights close to capacity." And overcapacity. Bauer said he expects bumps - - people with a boarding pass who can't fly because the airline overbooked the plane - - to increase during the next six months. However, bumps may trend lower in 2H 2009, if passenger traffic slows on the heels of the U.S. economic slowdown, he said. In any event, if you're bumped, your air travel-denominated compensation will be better than it was three years ago, Bauer said, due to federally-required higher payouts. [Bauer added that he does not own shares in or have a rating on any airline or airplane manufacturer. However, Bauer does have frequent flier miles/points in American Airlines (NYSE: AMR).] Continue reading For U.S. travelers, more packed planes, but more free flight vouchers Permalink | Email this | Comments<map name="google_ad_map_145-1294079"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1294079?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map> 
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