Holiday travel outlook: Airfares up to 10% higher

The Thanksgiving holiday is not only one of the busiest times to travel but it's also the most expensive. And this year it will only get worse.

Average airfares over Thanksgiving week (from Nov. 20 to Nov. 27) are 6% higher this year, according to data compiled by Hotwire. In December, airfares are projected to be about 10% higher than last year.

As major airlines like American Airlines (AMR, Fortune 500), US Airways (LCC, Fortune 500) and Delta (DAL, Fortune 500) struggle with year-over-year losses and even the threat of bankruptcy in American's case, carriers are reducing the number of destinations they fly to or even flying less frequently to popular routes in order to cut costs.


During the fourth quarter, domestic capacity -- or the amount of seats available on flights -- fell below year-ago levels, according to the Air Transport Association.

At the same time, the number of air travelers is rising. In July, the number of passengers in seats -- known as the domestic load factor -- reached an all-time high, according to the Department of Transportation's most recent data.

"Airlines are adjusting their flight schedules as necessary to get as close as they can to having a paying passenger in every single seat on every plane that takes off -- it only makes financial sense. But, this means higher fares for travelers," explained Melissa Klurman, contributing editor at travel site Travelocity.

Lire la suite : http://money.cnn.com/2011/10/18/pf/holiday_travel/index.htm

Source : CNN Money, By Jessica Dickler