US Air Traffic Dips On Easter Move, Falling Demand
US Airways said on Friday that its domestic mainline traffic fell 10.9 percent in March amid a shift in the Easter holiday and falling travel demand, resulting in a dip in passenger unit revenue.
The reduction in mainline traffic, which excludes flights operated by regional partners, came amid a 10.2 percent cut in domestic capacity from a year earlier.
The airline said its total mainline traffic - including international flights -- fell by 8.9 percent, and its total mainline capacity was down 6.1 percent.
As a result, planes remained relatively full, but less so than a year ago. The load factor was 81.9 percent, which was down 2.6 percentage points from March 2008.
"Our March traffic results reflect the Easter holiday shift from March in 2008 to April in 2009 as well as a reduction in travel that we, like the rest of the industry, experienced during the month," US Airways President Scott Kirby said in a statement.
"Both of these factors contributed to a decrease in consolidated passenger revenue per available seat mile of approximately 17 to 19 percent versus the same period last year," Kirby said.
But new fees for on-board items and services offset some of the weakness, he said. US Airways' total revenue per available seat mile on a year-over-year basis fell by between 13 percent and 15 percent.
The airline industry has been battered by economic weakness that has dampened travel demand. Airlines responded last year by cutting the number of seats for sale, and capacity reductions continued in 2009.
In a separate investor update filed with the government, US Airways said it expected its domestic mainline capacity to fall by 8 percent to 10 percent in 2009, while total mainline capacity will be down 4 percent to 6 percent.
US Airways said it had hedged 18 percent of its anticipated fuel consumption for 2009. The carrier has said it stopped buying hedges in August to save money and benefit from cheaper jet fuel.
The price of fuel fell in the second half of 2008 when the price of crude oil declined 75 percent from a record high reached in July.
