So why the move upwards in capacity. Well it's pretty simple, experts are saying and airlines are seeing that travel demand has been higher than expected. With gas prices so high, it can actually be cheaper to fly.
"While fuel prices remain high, the level of flying projected for the remainder of 2006 and into 2007 is expected to continue at a level higher than originally planned," Tim Rainey, senior vice president of flight operations, told pilots in a recent memo.
For example: I fly from Fargo to St. Louis quite often. On United I can get a round trip for about $325. If I would say to drive, I would spend that much on gas, plus hotel, and quite a bit more time wasted. Flying has become cheaper than driving. That's why so many people are flying now. Price equates to cost effectiveness. Not only are more people flying for leisure but business travel has picked up too. You can notice it when you get on your next flight. Notice how full business class is. Notice that near to the exit rows, near to the front of the plane, and on United, notice how Economy Plus is nearly always full. Business people have miles so they get those upgrades, meaning that planes are fuller.
If gas prices continue to climb you can expect air travel to continue to remain strong.
Some quotes taken from WCCO-TV Minneapolis-St. Pau
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