It what could be very good news for cheap airplane tickets and cheap vacation packages airlines are reporting lackluster demand for airline tickets. Often airline ticket prices respond according to trending demand for airline tickets.
Total second quarter airline profits worldwide, excluding Europe, fell for the first time in eight quarters. Continuing concern over business and consumer confidence appears to be affecting travel plans, not only of leisure travelers but business people as well.
Worldwide passenger demand in August fell almost 2 percent from July. U.S. airline demand rose 1.5 percent year to date through August.
American Airlines experienced a 0.4 percent fall in year over year traffic in August, followed by a 1.9 percent increase in September. Other airlines experienced traffic declines in September, including Delta Air Lines and US Airways, both of which experienced a 0.9 percent drop.
Airlines have reduced flights compared to last year. They are also benefiting from fuel prices having stabilized. Airlines cut domestic seats or flights in 39 states in September compared with last October.
Some experts do not expect airfare prices to drop going forward given that at least in the U.S., airlines are currently filling at least eight out of every 10 seats. Instead, customers are encouraged to purchase airline tickets, particularly for flights over the holidays as soon as possible, to avoid paying exorbitant last minute prices.
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By Steve Robinson