Industry trade group Airlines for America projects that U.S. carriers will transport 234.1 million passengers this summer, a 4 percent rise over 2016 and a new record for travel on U.S. airlines.
To meet the forecasted demand, airlines are adding about 123,000 seats, which will accommodate an estimated 100,000 more travelers each day between June 1 and Aug. 31.
“Rising U.S. gross domestic product, a steadily improving economy, all-time high household net worth and historically low airfares create the ideal conditions for summer travel growth,” said John Heimlich, vice president and chief economist at A4A. “Consumers continue to prioritize experiences and travel, and airlines are responding by hiring more staff, expanding seat availability and investing in new aircraft and customer-facing technologies.”
A4A’s data also show domestic seat capacity increased 3.8 percent in 2017, reaching its highest level in a decade, while international seat capacity rose 6.1 percent, also setting a new record.
Higher passenger volumes translate into increased revenues, but not necessarily higher profits. In the first quarter of 2017, passenger traffic climbed 1.6 percent and airline revenues increased 1.5 percent to $37 billion. Despite that revenue gain, airline earnings fell to $2.4 billion, down from $4.8 billion in 2016, as fuel and labor costs remained elevated.