18.05.12

US airlines ( NYSE:FAA ) have countered high jet fuel prices by cutting back on seat capacities. This means the average traveler is paying about 6% more this year for a round trip flight during the Thanksgiving holiday compared to last year.

The carriers, of course, are trying to make the most of this opportunity after the lull in post-summer travel. The Air Transport Association projects expensive tickets coupled with high unemployment could mean passengers flying Thanksgiving drop by 2%. Even so, airlines are likely to have a load factor of more than 85% on the Sunday and Monday following Thanksgiving.

Airlines are also trying to boost revenues by imposing surcharges such as premiums for picking seats, checking luggage, and booking through a travel agent. This could mean overcrowded flights and overhead lockers as passengers seek to work around the charges.

Some harried passengers are electing to drive. Although supposedly a longer travel experience, driving might be better to avoid airport delays, flight cancellations, baggage fees and, of course, packing in like sardines on overcrowded flights.

Source: Wall St. Cheat Sheet