A Significant Decline in Air Travel

The data from American Airlines may be indicative of the declining sales in the months to come. In this economy, air travel may be regulated to being a choice when only absolutely necessary:

“Domestic passenger traffic on American Airlines plunged more than 19 percent last month as budget-conscious travelers opted to stay on the ground.

International traffic on the Fort Worth-based airline dropped by about 5 percent. Overall, traffic was down nearly 15 percent compared with November 2007.”

link: American Airlines’ traffic plunges

The airlines have been struggling to remain profitable. With further declines, the airline industry will be following the automakers. Airline executives may be making trips to Washington to seek financial assistance. And the tipping point will be when Congress has no alternative except to decline government assistance. The bailouts simply cannot be limitless.

Catherine Forsythe