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United Airlines, on Wednesday said its passenger load factor reached a record 88.3 percent in June. Continental Airlines on Monday said its mainline load factor was a record 84.8 percent in June. Low cost carrier, Southwest Airlines on Wednesday said its June load factor was 80.4 percent, compared with 76.2 percent a year earlier.
These conditions may blur the distinction between major airlines that cater to business travelers and low-cost carriers that offer cheap, no-frills transportation.
"We're now seeing the effects of major cuts in flight schedules, and the flights are becoming like sardine cans -- more bodies, fewer seats," said Joe Schwieterman, a transportation expert at DePaul University.
Continental estimated its mainline revenue per available seat mile increased between 9 and 10 percent in June. Continental is the only carrier that releases monthly revenue estimates.
Schwieterman said the full planes are good news for airlines, which have been pulling planes off less profitable routes. The high load factors may well continue beyond the peak travel season into the fall if airlines can keep their capacity down.
He warned, however, that while demand for airline tickets remains strong, crowded planes could mean long lines and waning customer service.Yahoo! News
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