Finding cheap airplane tickets and cheap vacation packages is becoming more challenging with the cost of air travel up 9 percent in April compared to the same month in 2010. Demand remained strong for the month with U.S. airlines experiencing a 3 percent increase in passenger traffic.
The largest increases in passenger traffic and airline revenue came from international travel. The biggest airline revenue gains were from trans-Atlantic routes, where airline revenue rose 27 percent over last year. 2010 air traffic in that region was disrupted by the volcano in Iceland in April.
Trans-Pacific revenues increased almost 6 percent even though it was negatively impacted by the earthquake and tsunami in Japan. The most significant airline ticket price hikes were witnessed on Latin American routes, where U.S. airlines raised ticket prices by 16 percent. Passenger traffic grew by 24 percent in April.
The Air Transport Association (ATA) is predicting continued passenger growth of almost 2 percent through the summer months.
Although airlines have experienced steady growth in international routes, domestic flights remain significantly below previous highs. The projected number of domestic passengers this summer, 180 million, is more than 6 percent off the peak in 2007. Airlines slashed domestic flights in 2008 in response to a major increase in fuel prices.
This years increase in fuel costs is impacting airlines. During the first quarter of 2011 airlines paid 30 percent more for fuel than over the same period in 2010. Jet fuel prices are at their highest levels since 2008, according to ATA. www.cheapfares.com