WASHINGTON --
Total agent sales via ARC inched up 1% to nearly $17.4 billion in
the first quarter of this year, but the increase had a decidedly
international flavor: The total of international fares collected
increased by 9%, while the domestic total declined by 5%.
The disparity is
further evidence of a dramatic shift.
Just five years
ago, international fares accounted for 32% of ARCs first-quarter
sales.
This year, that
figure is 42%.
The reasons for
the trend seem obvious. In recent years, U.S. legacy carriers have
moved a higher percentage of their total capacity to international
routes, where they dont face low-cost competition and have been
able to raise fares.
For example, U.S.
airline capacity on international routes was 8.9% higher in
February than a year ago; in contrast, domestic capacity was 2.6%
lower, according to the Air Transport Association (ATA).
Similarly, U.S.
airline fares, as measured by cents paid per mile, were 7.7% lower
year-over-year in February for domestic routes but were 3.9% higher
for Atlantic routes and 5% higher for Pacific routes, ATA figures
show.
ARCs report for
the quarter covered the 13-week period ended March 27. For March, a
five-week month, sales were up 2% to $7.3 billion.
Thats not much,
but the big thing is that its positive, said Kathy Argiropoulos,
ARCs general counsel and vice president of industry products and
services.
On an overall
basis, fares and sales are moving upward. That to me is
good.
The quarterly
statistics also show an 11% increase in average weekly sales per
location to $58,129.
That is with a 6%
decline in the number or ARC-participating agent retail locations,
at 20,560 as of the end of March. ARC also listed 2,277 satellite
ticket printer locations, down 24% from 2,988 a year
ago.
To contact
reporter Andrew Compart, send e-mail to [email protected].