U.S. airlines group expects busiest summer travel season ever

Chicago's O'Hare Airport Snarled In Ground Stops After Fire At FAA Building
CHICAGO, IL - SEPTEMBER 26: Passenger check in for flights at O'Hare International Airport's on September 26, 2014 in Chicago, Illinois. All flights in and out of Chicago's O'Hare and Midway airports have been halted this morning because of a fire at a suburban Chicago air traffic control facility. (Photo by Scott Olson/Getty Images)
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Summer travel on U.S. airlines is expected to reach an all-time high this year on the wings of a strong U.S. economy, Washington-based trade group Airlines for America said on Monday.

The group estimates that about 222 million passengers will fly on U.S. airlines from June through August, up 4.5% from the same time last year.

U.S. carriers are increasing the number of seats available for booking by 4.6% to accommodate the demand, the group said.

“The continued rise in U.S. consumer sentiment and employment is leading to more people traveling more often,” the group’s Chief Economist John Heimlich said in a statement.

The top three non-stop international destinations from the United States are Canada, Mexico and the United Kingdom, the group said.

Strong U.S. domestic demand is poised to benefit American Airlines Group Inc (AAL), United Continental Holdings Inc. (UAL), Delta Air Lines Inc. (DAL) and others, while the lower cost of fuel–airlines’ largest variable expense–is adding hundreds of millions of dollars to their bottom lines.

Another factor encouraging demand has been the strong dollar, which makes spending time abroad more affordable. Although the dollar has fallen around 7% from its peak against a basket of major currencies in recent weeks due to a string of disappointing economic data, it’s still up over 17% from the middle of last year.