"Airlines predict record-full summer"

Sunday, July 11, 2004

Airlines predict record-full summer
Domestic airlines are packing more people into each plane this summer.
By Chris Woodyard
USA TODAY


United and Northwest (NWAC) say they filled a higher percentage of their
seats in June than any other month ever. Continental (CAL), US Airways
(UAIR), Alaska (ALK) and Southwest (LUV) say last month was a record-setter
for any June.

"We'll see record high loads throughout the summer," says economist Dave
Swierenga of airline consulting firm AeroEcon. Among the major airlines,
Northwest reported the fullest planes in June - 86.4%. Planes of all the
major airlines, on average, flew more than three-quarters full last month.

Planes are flying fuller because of surging travel demand and tight
restraint on the supply of seats by cash-strapped airlines.

During the first five months of this year, the number of airline passengers
has almost reached the pre-9/11 boom year of 2000. But passengers this year
were competing for 5% fewer seats, Swierenga says. 

Some passengers say the fuller flights not only cramp their comfort, but
also increase the likelihood of being bumped from an overbooked flight. 

"All the planes are completely full," says frequent-flier Crawford Hammett
of Spartanburg, S.C. He says he's been on many overbooked flights recently,
including one US Airways flight.

US Airways spokesman David Castelveter says the airline is doing its best to
fill seats without having to bump.

Yet fuller planes alone won't be enough to turn around the beleaguered
industry, which is on track to lose about $3 billion this year. 

Contributing to the fuller planes:

   .Fare competition. US Airways says its flights from Philadelphia offering
its discount GoFares flew 85% full in June, compared with about 81% on its
big jets as a whole. The airline implemented the lower fares in response to
discounter Southwest entering the Philadelphia market.

   .Route strategy. United's Jenna Obluck says the airline's higher loads
are due to restructuring its route system to focus on those most popular
with travelers.

   .Plane types. Airlines have ditched some jumbos in favor of smaller jets,
which are easier to sell out.

   .Schedules. Airlines are reluctant to add flights when fares are low and
fuel prices are high. "They don't need any more capacity. Even at 80% load
factors they are losing money," says Denver-based airline consultant Mike
Boyd.

How full is full?
   
Percentage of seats filled by paying passengers
last month and the change from June 2003.
 
Airline      Filled  Pct. point  
             seats     change

Northwest    86.4%      4.6 
United       86.0%      4.0 
JetBlue      85.5%     -1.5 
Continental  82.4%      1.4 
US Airways   81.6%      3.0 
Delta        81.3%      0.7 
ATA          80.9%     -0.7 
America West 80.5%     -1.2 
American     79.0%      0.2 
Southwest    78.8%      4.2 
Alaska       76.6%      3.6 
AirTran      77.3%      2.9

Source: The airlines 


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