Wednesday, May 20, 2009

Airline Revenue Keeps Plunging

We'll see if all of those flash fare sales finally work to help airlines start climbing out of the deep revenue hole this summer. So far this spring, the sales haven't counted for much in terms of cash raised.

Passenger revenue for U.S. airlines fell 18 percent in April compared with April 2008, the Air Transport Association says.

Compare that against the decline in the number of passengers (6.3 percent) and the 12.6 percent decline in a key metric, the cost of flying a passenger one mile (the decline is due to lower oil prices), and you see that the fare sales may have maintained some volume, but without ginning up enough cash.

The fare sales are continuing -- but soon, something's got to give.


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