The immediate future may not look bright for the airlines, but it suggests that cheap airplane tickets and cheap vacation packages should remain plentiful in 2010.
Airlines experienced their largest ever decline in passenger demand in 2009 according to the IATA (International Air Transport Association). Demand for passenger tickets dropped almost 4% last year, with the average flight only filling three quarters of the available seats. Demand for air freight fell just over 10 percent, filling less than half the existing capacity.
IATA stated that 2009 is the worst year the airline industry has ever seen. Given that performance, 2010 appears to be shaping up as another year of heavy losses.
The airline industry is forecasted by IATA to lose $5.6 billion in 2010. Airlines are expected to approach this year emphasizing capacity control and cost reduction.
Calls for increased security are feared to negatively impact airline travel in the immediate future.
While this all might spell doom and gloom for the airlines in the short term, it suggests that travelers should benefit by lower priced airline tickets.