Vacation season travel cut down due to high fares

According to the Air Transport Association(ATA),less number of people will fly this summer and and those who do should expect higher fares and crowded flights. At a press conference in Washington D.C on Tuesday,James May the president of industry group ATA said that the rise in fares is inevitable. and this is because of the soaring fuel prices. The ATA estimates that jet fuel costs will rise to a record-breaking $59.5 billion in 2008, compared to $41.2 billion in 2007. The cost of fuel currently makes up 36.5% of the price of a ticket, compared with 15% in 2000, according to the ATA.
James May can’t say how much the fare will increase but according to fixed income analyst the airlines won’t be able to push them up much further.Because of the
weak economy it is very tuff for them to increase fares and because there have already been a series of fare increases. Delta (DAL, Fortune 500), United Airlines (UAL) and American Airlines (AMR, Fortune 500) announced their most recent fare increase, of an additional $20 for a round trip ticket, on May 8. May has estimated that the the number of passengers to drop this summer to 211.5 million, from 214.2 million during the June-to-August period last year. And as the capacity will reduce, he expects planes to be 85% full.
The airline industry is scaling back flights and grounding planes to try and save money, but the skies are still crowded. To alleviate congestion, May said the ATA is trying to get access to military airspace on the East and West coasts. At the same meeting, Greg Principato, president of the Airports Council International-North America, said that the main reason of flight delay is bad weather. And for passengers comfort level, Principato said most airports will keep one food vendor operating 24 hours a day, and will provide cots, blankets and
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