»»FAA Predicts a 9 Percent Decline of U.S. Domestic Traffic in 2009
According to the FAA (Federal Aviation Administration)’s forecasts domestic traffic on major U.S. airlines will decline by nearly 9 percent in 2009. The number of passengers will board U.S. airlines on flights international is expected to decline by 2.4 percent.
However FAA sees the downturn lasting only through 2009, and forecasts that growth will resume next year.
The agency predicts domestic boardings will grow 2.3 percent a year to reach 690.2 million by 2025. International boardings on the big carriers and smaller regionals will grow 4.3 percent a year from 2010 through 2025. […] The FAA based its forecasts on the assumption that the U.S. economy will grow 2.7 percent a year and worldwide economic growth will be 3 percent a year through 2025. The FAA assumed inflation will be modest, about 2 percent a year.
Last year, U.S. passenger and cargo airlines reported operating losses of $2 billion, compared with an operating profit of $10.1 billion in 2007. Revenue rose 8.8 percent but costs grew 16.9 percent as fuel prices hit an all-time high in July before tumbling.
The number of passengers boarding U.S. flights, including regional carriers, dipped to 679.6 million from 690.1 million in 2007, though international boardings rose to 77.8 million from 75.3 million.
Bookmark this article!
