Get Used to Crowded Flights Because It's Probably Going to Get Worse

Officially, it’s called the passenger load factor. A better name might be the “I’m sitting so close to him that I can smell his (bad) breath” factor.

The passenger load factor is important to airlines because it’s a measure of profitability. And, it’s not a mystery. The more paying passengers on a plane the better. Empty seats do not buy tickets, pay baggage fees, or splurge on those little bottles of alcohol.

That’s why airline passengers accustomed to empty seats next to them are finding, more and more that those seats are occupied. According to the Los Angeles Times, U.S. airlines, last year, set a new record for the percentage of seats filled on commercial flights. The average rate was 82.8 percent, up from 82 percent in 2011, according to the U.S. Department of Transportation.

eTurboNews reported that Airlines for America, the industry trade organization, said the 82.8 percent average rate represented the highest level for scheduled service since 1945.

In addition to the domestic record, John Heimlich, Vice President and Chief Economist for Airlines for America, said U.S. carriers accommodated more than 83 million passengers internationally, demonstrating airlines’ ability to compete in “highly competitive global markets."

The rate for filled seats has been on the rise for several years as airlines cut seat capacity in the face of rising demand. The 0.8 percent more passengers carried by airlines last year brings the total to 736.6 million (mostly) paying customers, according to the Dept. of Transportation.

Increased competition for seats has allowed them to increase fares. The Department of Transportation’s Bureau of Transportation reports that fares rose by an average of 8.3 percent in 2011 and another 3.1 percent in the first 9 months of 2012.

Breaking it down by individual airline, Delta Air Lines DAL carried the most passengers of any airline, 116.4 million, in 2012. This represents a 2.6 percent increase over the previous year, according to the Department of Transportation.

Southwest AirlinesLUV came in at #2 and carried 112.2 million, a 1.5 percent increase from 2011.

The unofficial #3 spot is held by United Continental Holdings UAL, formed from the United/Continental merger. The two airlines, in 2012, carried a combined 92.4 million passengers, which is down 3.4 percent from the previous year.

At mid-day, Delta is trading at $16.72, up a little over one percent. Southwest is going for $13.12 and is up almost 1.25 percent on the day. United Continental is selling for $32.12 and is up almost one percent.

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Posted In: NewsEcon #sGeneralDelta Air LinesSouthwest AirlinesUnited Continental Holdings
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