In what should mean good news for future cheap airplane tickets and cheap vacation packages, global airline capacity increased 6 percent in December, according to aviation research company OAG, as airlines added flights to take advantage of improving travel demand.
Demand for airline travel grew in all regions of the world except the Americas. Flight capacity to and from the Middle East, Asia, Africa and Europe increased between 11 and 13 percent in December when compared to December of 09.
Most European hub airports enjoyed capacity increases including 13 percent at Berlin Tegal and Copenhagen, 11 percent at Barcelona, and 10 percent at Amsterdam. Flight capacity dropped 11 percent in Athens.
Domestic U.S. airline capacity increased 3 percent in November when compared to November of 09. Domestic capacity had been steadily declining until August, when it experienced a modest growth of just under one percent.
Airlines can increase capacity by adding flights or by using larger plans than carry more passengers. Air traffic has increased this year after falling during the recession.
Most airlines reduced flights during 2008 and 2009 because record high fuel prices and a worldwide recession resulted in fewer people flying. The reduced number of airline seats and rebounding economy have combined to help increase airline ticket prices this year, resulting in big airline profits.
If airlines continue to increase capacity at a pace faster than prevailing demand, prices for airline tickets are likely to fall.
www.cheapfares.com