Domestic air travel picking up: airlines

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Domestic air travel picking up: airlines
Last Updated Thu Jan 10 11:46:34 2002

CALGARY - Canadians are returning to air travel according to two of=20
Canada's airlines. They say people are headed to domestic locales and are=20
continuing to shun the United States. Air Canada released its latest=20
numbers showing that traffic was down in December compared to the same=20
period last year. However, it was down only by 2.5 per cent =97  something=
=20
analysts say bodes well for the industry.  In light of the terrorist=20
attacks of Sept. 11, worldwide air travel went into a tailspin. But in=20
Canada, travellers seem to be recovering from the shock.  Air Canada's=20
Angela Mah says the U.S. market is a hard sell for Canadians and that's why=
=20
the carrier dropped its discount Tango service to some American=20
destinations.  "We have noted that traffic is coming back somewhat faster=20
in Canada than that of the U.S.A., and basically our sense is that the=20
further you get away from ground zero (in New York), the less the=20
impact."  No-frills airline WestJet has seen its traffic volume grow in the=
=20
months after Sept. 11, which has buoyed airline analysts and the industry.
Jacques Kavafian, an analyst with Yorkton Securities, says the key is the=20
lower prices which are offered routinely by no-frills carriers such as=20
WestJet and through seat sales by Air Canada.  "People are not afraid of=20
travelling. At a price, they're willing to travel," says Kavafian.  "So=20
that's a good sign, because if the economy recovers, more people will have=
=20
money and they'll travel again."  Kavafian says the price of an airline=20
seat is down about 10 per cent from a year ago.
While the outlook seems brighter for Canadian destinations, he expects=20
charter companies could be heading into some tough months. Warm weather at=
=20
home is hurting sales for holidays in the sun.

Written by CBC News Online staff




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