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(An article from Yahoo! Finance by AP.)
Airlines Reporting Near-Record Occupancy
Wednesday May 3
By Stan Choe, AP Business Writer
More Passengers, Shrinking Capacity Mean Fuller Planes
Airlines across the industry are reporting higher traffic numbers for April, as planes are flying at their fullest levels since the 1940's.
From low-cost carrier Southwest Airlines to legacy carrier Continental Airlines, companies are reporting occupancy rates in the mid 70s to mid 80s. The numbers are among the highest in the industry's history, said Mike Boyd, an airline industry consultant based in Evergreen, Colo.
"Everything's full," he said.
That's what happens when demand is up -- more passengers are flying -- and supply is down -- airlines continue to reduce some domestic capacity because of high jet fuel prices, said David Castelveter, spokesman for the Air Transport Association, a Washington-based industry group.
The higher occupancy rates mean the industry is reporting some of its strongest results in years. Michael Linenberg, a Merrill Lynch analyst, said in a research note that when all the carriers report their April traffic numbers, he's expecting "superb" gains in domestic revenue per available seat mile, which equals one paying passenger flown one mile and is the airline industry's measure of traffic.
Some analysts believe the improvement is likely to continue.
JP Morgan analyst Jamie Baker, who counts himself among the more optimistic of industry watchers, said he sees the airline industry's recovery lasting through next year. Baker wrote in a research note that for next year, he's projecting higher industry revenue, slightly higher capacity and continued high occupancy rates of 80 percent.
"Anyone who has flown recently won't debate this," he wrote.
The high price of oil, however, continues to be the thorn in the industry's side for profitability: each increase in jet fuel of 1 cent means $199 million in annual operating costs for the industry, according to John Heimlich, chief economist for the Air Transport Association.
Last year, U.S. airlines reported a domestic occupancy rate of 77 percent, which was their highest rate since 1946, according to data compiled by the Air Transport Association.
Of the airlines who have already reported their April traffic numbers, both low-cost and legacy carriers are reporting even higher occupancy rates than last year.
Year-to-date, Delta Air Lines Inc., Southwest Airlines Co. and American Airlines parent AMR Corp. all reported fewer empty seats on their flights.
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(Another article on the same topic.)
Source: Los Angeles World Airports
Los Angeles and Ontario International Airports Expect Busiest Summer Travel Season in Five Years
Wednesday May 24, 7:03 pm ET
LOS ANGELES, CA--(MARKET WIRE)--May 24, 2006 -- Flights from Los Angeles International and Ontario International Airports (LAX and ONT) this summer will be full or nearly full due to growing demand for travel and a tight supply of seats. Both airports are expecting the busiest summer travel season in five years.
Airport officials forecast this summer airlines will serve approximately 18.7 million passengers at LAX and about 2 million at ONT, an increase of 200,000 passengers at LAX and 50,000 at ONT. Since airlines will be offering approximately the same number of seats this summer as during the same period last year at both airports, flights are expected to operate with average load factors approaching 90 percent and airfares are likely to be higher based on scarcity of seats and higher fuel costs.
The summer travel season starts this Memorial Day weekend and continues through Labor Day. LAX expects to serve nearly 800,000 and ONT about 90,000 passengers during the upcoming four-day Memorial Day weekend, or about the same number as last year. The busiest travel days will be Friday, May 26, and Monday, May 29.
"Travelers will find LAX passenger terminals crowded and flights full with few empty seats," said Lydia H. Kennard, executive director of Los Angeles World Airports, the city department that owns and operates LAX, ONT and two other airports in Southern California. She added, "Airport, airlines and the federal agencies have been planning these past few months to ensure smooth operations during the summer that balances safety and security with improved customer service."
"Providing the necessary security with the convenience passengers desire is a challenge," said City of Los Angeles Mayor Antonio R. Villaraigosa. "But it's one I'm confident we can meet at LAX if everyone works together," he added.
Airport officials are advising passengers to arrive at LAX two hours before a domestic flight and three hours before an international flight. Passengers at Ontario Airport are advised to arrive 90 minutes before their flights.
Since last year's summer travel season, LAX has embarked on a program of customer satisfaction innovations through 2008 that emphasize improved airport accessibility, passenger processing and terminal facilities.
Unlike some other U.S. airports, LAX expects all of its parking facilities to have available space throughout the summer. This is partly due to recent implementation of several ground access initiatives.
In March 2006, non-stop FlyAway bus service from Union Station direct to all nine LAX passenger terminals began service. The cost is $3 each way for adults, $2 for children 2-12 years old, and free for children under 2 years. The 20-mile ride uses freeway carpool lanes and averages 35 minutes. The Union Station FlyAway is averaging nearly 600 passengers a day, which projects to more than 200,000 riders the first year. This is more than double airport officials' expectations. In addition, more than 80 percent of FlyAway customers used public transportation to get to Union Station. Five hundred parking spaces also are available at Gateway Center Plaza for FlyAway customers at $6 a day for up to 30 days.
The Union Station service joined the long-established Van Nuys FlyAway, which has the same fares and offers over 5,000 covered parking spaces at the new FlyAway bus terminal for $4 a day for up to 30 days.
Two weeks ago, new valet parking service began across from Terminal 4 on the Lower/Arrivals Level. The lot is conveniently located for passengers of American Airlines in Terminal 4, Delta Airlines in Terminal 5, and the more than 30 airlines in the Tom Bradley International Terminal. The lot is well-lit, secure and open 24 hours a day. The daily rate is $38 or $10 per hour up to the maximum daily rate.
Passengers are also advised to tune car radios to AirRadio 530AM, the official source for traffic and parking conditions, security measures, terminal conditions, and airline locations 24 hours a day. This summer the station will provide live traffic and parking updates.
Motorists picking up arriving passengers can save gas and parking by using the FREE LAX Cell Phone Waiting Lot at 9011 Airport Blvd. while waiting for arriving passengers.
Because many summer-time passengers are infrequent travelers, airport officials are advising passengers to check the Transportation Security Administration website at www.tsa.gov for up-to-date lists of prohibited items for checked luggage and carry-on bags.
The airports also offer several "Smart Traveler Tips" to help passengers process quickly through airline and security procedures on their websites at www.lawa.org.
