U.S. airlines expect 4 percent rise in Thanksgiving travel

WASHINGTON (Reuters) - Airlines are expected to carry more passengers on more flights during the busy November travel period than they did last year but passengers also will pay more to fly, industry officials said on Monday.

The industry's leading trade group, the Air Transport Association, projected that major carriers will fly roughly 27 million passengers on domestic and international flights during the 12-day Thanksgiving holiday rush that begins Friday and ends November 27, a 4 percent annual increase.

The forecast for the busiest travel period of the year is based on a sampling of advance bookings and is good news for an industry struggling to maintain its profit momentum from spring and summer with fuel prices at or near record highs.

Fare expert Terry Trippler of Cheapseats.com said travel during the period is spread all over the country because it is a family holiday.

"It is just as hard finding a seat to Allentown (Pennsylvania) as it is to Orlando," Trippler said.

Responding to higher fuel prices with a series of fare increases, travelers will pay between $20 and $45 more this Thanksgiving than last, Trippler said.

He also expects another ticket price increase before the December holiday rush, if oil prices do not retreat.

Airline shares rose sharply on Monday on a drop in oil prices. Delta Air Lines and Southwest Airlines Co were up more than 8 percent while Northwest Airlines jumped nearly 8 percent.

With worsening delays prompting consumer outrage this past summer, carriers are planning steps to minimize disruption to a travel network that is overwhelmed by exploding demand, an outdated air traffic control system, and growing business pressures.

Airlines have added more flights to accommodate demand and will place extra aircraft at certain airports to replace those that cannot fly for mechanical or other reasons.

The industry also is working with the Federal Aviation Administration to improve routing and streamline air traffic procedures to minimize flight delays, especially into the three New York-area airports.

Nevertheless, carriers have been subject to withering criticism in recent months over crowding, deteriorating customer service and declining on-time performance.

James May, Air Transport Association president and fierce critic of the FAA-run air traffic control system, told reporters on Monday that carriers are "making every effort large and small" but that passengers need to arrive at the airport in plenty of time and be patient.

"If you always expect the worst and you don't have the worst then your frame of mind will be more positive," May said.

Airlines plan to waive change fees if a passengers must be re-ticketed for another flight due to certain delays. They are also freeing up seats in key markets to accommodate passengers whose flights are canceled or delayed by bad weather.