U.S. airline passenger revenue fell in October, completing a full year of dismal monthly performances. From October 2008 to October 2008, passenger revenue dropped 15 percent, according to calculations by the Air Transport Association. The study was based on a sample group of more than 24 air carriers. Falling ticket prices are said to be the problem … which means we can trace it back to household finances, throwing the job market into the mix.
With unemployment now above 10 percent, consumers are being careful with their extra cash (if they have any), and dropping cash on plane tickets is pretty difficult. Hey, that’s why more people are driving this year than in the past.
In October, the number of people flying on U.S. airlines fell 3 percent, and the average price to fly one mile dropped 13.5 percent. Basically, the number of people flying hasn’t fallen much, but they’re demanding much better pricing for their business. Airlines have to take it on the chin in order to bring any revenue in the door at all.