Consultant says air travel slump will linger

Airline consultant Boyd Group says air travel slump will linger, carriers will limit capacity

• On 8:37 pm EDT, Tuesday October 13, 2009

EVERGREEN, Colo. (AP) -- An airline consulting firm says U.S. air traffic will decline through next year before beginning a slow rebound.

Boyd Group International said Tuesday it expects passenger boardings will fall to 674.6 million in 2010 from 748.9 million in 2008, a decline of 10 percent in two years.

The consulting firm, which held a conference last week, says airlines won't repeat their past mistake of adding back capacity too quickly. Companies have been cutting back on routes in an effort to fly fuller planes and trim costs.

"The airline industry is now more rational, and won't add back capacity very rapidly, even with an economic upturn," said Michael Boyd, president of the firm.

Boyd also predicted airline fleets will change, with many smaller regional jets being grounded because carriers find their operation not economical. That will raise problems for service to small communities from hub airports, Boyd said.