CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Best Funds Ask the Mole Best Places to Retire Big Tech Blog Techland Blog Sectors and Stocks Fortune 500 Techs Tech Talk 100 Best Places to Launch Ultimate Resource Guide Small Biz Makeovers FSB 100 Ask & Answer Fortune 500 Technology Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
SPECIAL REPORT

Crowds, delays await Thanksgiving travelers

Airlines have been cutting capacity to save money, meaning crowded planes for holiday travelers, even though many are staying home this year.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Aaron Smith, CNNMoney.com staff writer

Which should be the Obama administration's priority?
  • Stimulating the economy
  • Reducing the budget deficit
Bankrate.com
 
MMA 1.25%
$10K MMA 1.27%
6 month CD 1.35%
1 yr CD 1.71%
5 yr CD 2.57%
Find personalized rates:
 

NEW YORK (CNNMoney.com) -- Despite higher air fares and an economic crisis that is forcing many Americans to stay home for the holidays, air travel is expected to be more crowded and hectic than usual this Thanksgiving, experts say.

The industry launched a capacity reduction initiative this year, cutting their least fuel-efficient flights in response to fuel prices that hit record highs this summer. This means there are less flights to choose from, and less of a buffer for unfortunate travelers who miss their flights.

"People need to be prepared to be stranded," said Brent Bowen, professor of aviation science at the Parks College of St. Louis University, noting that this applies to airplanes as well as airports. "Don't board that flight unless you're prepared to sit on that tarmac for a few hours."

The Official Airline Guide, a source for flight schedules and a guide for business travelers, expects industry-wide capacity cuts of 9% for domestic flights in the fourth quarter, with steeper cuts from some individual airlines.

UAL Corp.'s (UAUA, Fortune 500) United Airlines is cutting domestic capacity by up to 15.5% for the fourth quarter, while Continental Airlines (CAL, Fortune 500) is cutting domestic capacity by 9% for the quarter. AMR Corp.'s American Airlines plans to decrease domestic capacity by 12.5% in the fourth quarter. Delta Air Lines (DAL, Fortune 500) is decreasing domestic capacity by 16% for the Thanksgiving travel period.

This results in more crowded flights. The industry group Air Transport Authority projects that planes will be nearly 90% full, on average, on the three busiest days of the 12-day Thanksgiving travel season: Nov. 26, Nov. 30 and Dec. 1. The ATA said that on most days in the season, the planes will run slightly more than 80% full, which was the holiday average last year. This is in spite of a 10% decrease, year-to-year, in the number of passengers.

"Despite the expected decline in passengers this Thanksgiving holiday travel season - the first such decline in seven years - Thanksgiving remains the busiest travel time of the year for airlines," said ATA president James May, in a prepared statement. "And make no mistake - the airports will be busy and many flights will be 100% full."

Bowen of St. Louis University said this could result in lengthy delays because there are fewer available seats for those who miss their connections, which could create a "ripple effect" that strands travelers in airports.

"[The airlines] are cutting back on flights to save money and they're cutting back on seats," said Bowen. "If the consumer gets stuck somewhere, either at their destination or at another location ... there's going to be less opportunity to move them through. That's what the consumer needs to be worried about."

Bowen said this will have more of an impact on travelers with connecting flights, rather than those who fly direct.

Higher fares, fewer flights

Customers also needs to be worried about paying higher fares, said Kellie Pelletier, spokeswoman for the travel search engine Kayak.com. She said that fares are up 15% to 20% for Thanksgiving and Christmas related travel, compared with last year.

"There are fewer seats available and the remaining seats have become more expensive," said Pelletier.

This has caused many cash-strapped travelers to change their plans, she noted. A Kayak survey of 1,400 respondents found that 27% canceled their holiday plans because of economic hardship. When the survey was completed on Oct. 30, nearly two-thirds of the participants said they hadn't even bought their plane tickets yet, because they were still looking for travel deals, according to Kayak.

Other travelers are cutting peripheral costs, like staying with their family instead of in hotels, Kayak said. The survey found that 23% accepted multiple layovers, or longer layovers, to reduce costs, putting them at increased risk of getting stranded. Another 20% said they would cut their trips short to save money.

Pelletier said the "silver lining" for budget conscious travelers is the plethora of hotel discounts now being offered, as the hotel industry struggles to fill rooms.

Rick Seaney, chief executive for Farecompare.com, an air fare search engine and information site, said there are still last-minute holiday deals for those who think they can't afford to fly.

"They need to go back and check [the fares], because they may be in range," said Seaney. "Procrastinators are going to be rewarded this year." To top of page

Features
  • obama_official_portrait.04.jpg
    Not even ultra-dapper President Obama could help Hartmarx, the Chicago-
    based clothing maker. More
  • great_adventure_map.04.jpg
    It's been a thrill ride for Six Flags, and the amusement-
    park operator had to wave the white flag. More
  • pilgrims_pride.04.jpg
    The company has gone to the chickens despite producing 42 million dozen table eggs per year. More
  • vallejo_california.04.jpg
    This Bay-area town sought assistance after plunging property tax revenue left coffers empty. More
  • daily_blossom_site.04.jpg
    The bloom is off this celebrity florist as corporate budgets for flower arrangements disappear. More
  • debt_bills.ju.04.jpg
    Isn't it ironic that a company with a mission to help others avoid bankruptcy was unable to help itself? More
  • nrg_coal_plant.04.jpg
    What happens when one energy company refuses to be swallowed by a bigger rival? More
Markets Last Change
Dow Jones 8,183.17 4.76 / 0.06%
Nasdaq 1,752.55 5.38 / 0.31%
S&P 500 882.68 3.12 / 0.35%
10-year Bond 97 20/32 Yield: 3.40%
U.S.Dollar 1 euro = $1.391 -0.011
July 9, 2009 4:02 PM ET
CompanyPrice% Change
YRC Worldwide Inc 1.42 59.55%
American Intl Group Inc 9.50 -27.48%
Beazer Homes USA Inc 1.64 13.10%
KB Home 12.46 9.47%
Jul 9 3:56pm ET †
More Galleries
The best credit card for you All credit cards are not created equal. Here are a few we like. More
New Jaguar XJ: Tata's luxury flagship Jaguar rolls out a new top-of-the-line luxury sedan -- the finishing touch on a troubled brand's make-over. More
Cyber-bureaucracy in India An intrepid entrepreneur looks to make millions bringing e-governance to India's remote villages. More

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.