Slightly Down is the New Up: Airlines Find Hope in April Traffic

You know times are tough in the airline industry when this is what passes for good news these days: passenger traffic on U.S. airlines fell in April, 2009, but its rate of decline wasn't as steep as it was in March, raising hopes for a recovery later this year. As the AP points out, however, slowing the free-fall has come at a cost to the carriers, who have been forced to slash ticket prices to maintain cash flow and keep their airplanes full. United reported that its April traffic was more than 10% lower than it was last year, while Delta and American also reported declines.

The upshot is, of course, that there's never been a better time to fly, as ticket prices have fallen to historic lows, with some airlines even selling seats at a loss. In the words of Stifel Nicolaus & Co. analyst Hunter Keay, "If you're flying across the country for $99, that's below cost." Works for me.

A recent search on Orbitz didn't turn up any double-digit fares, but a $279 nonstop round trip from JFK to LAX on Delta is nothing to sneeze at, and opens up a world of long weekend opportunities. I'm personally tempted to take advantage of the super cheap fares to Mexico, like a $270 round trip to Cancun, or a $280 flight to Mexico City. Something tells me that prices will creep up later this year, so I'm perfectly happy to take advantage of the airline industry's misery for my own benefit. Nothing personal, just business.

[Photo: milehighholidays.org]

Related Stories:
· Airline Traffic Declines Ease in April [AP via Yahoo! News]
· Airline Coverage [Jaunted]

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