Air Traffic Levels Continue To Rise

The Air Transport Association yesterday predicted 200 million passengers would fly on U.S. airlines between Memorial Day and Labor Day, a 4.1 percent increase from last summer. Meanwhile, the International Air Transport Association today said global passenger traffic rose 8.7 percent during the first four months of 2005.

Domestically, ATA data released this month showed a 6.3 percent increase in passenger traffic for the January-April time period. Capacity rose more slowly at 2.6 percent, pushing average passenger load factor up 2.7 points to 76.1 percent.

Despite such indicators, both ATA and IATA highlighted cost-control challenges facing their member carriers, including high fuel prices and taxation. "Low fares continue to prompt high travel volumes and the situation this summer will be no exception," said ATA president and CEO James May. "Nonetheless, the carriers will continue to struggle with high fuel prices and government-imposed costs, erasing much of the gain they would expect to see otherwise from the massive cost-cutting measures they've undertaken during the last few years."