Aviation Industry Hit Hard as Slowing Economy Hurts Travel Demand

http://employmentcrossing.com The growing financial crisis is hitting the aviation industry hard, as Americans cancel travel plans and companies stop booking expensive business flights. More and more Americans are cutting down on consumption and are seen shifting to cheaper alternatives like railroads, according to iStockAnalyst.com. In August, the 19 biggest commercial airlines flew 60 million passengers, three million fewer than the same period a year ago. Airlines have also been cutting capacity measured in available seat miles in order to counter the higher cost of jet fuel. The biggest drop was observed at American Eagles San Juan, Puerto Rico-based Executive Airlines, which saw its traffic declining by double digits. Total September traffic fell 21.9% on a 17% slash in capacity. Alaska Airlines was the sole airline to report a gain in passenger traffic. The Air Transport Association estimates that U.S. airline losses will total $7-10 billion for 2008.

YouTube | October 6, 2008