JUPITER RESEARCH FORECASTS ONLINE AIR TICKET SALES TO GROW 14% DESPITE WAR AND THREAT OF SARS(New York, NY - May 19, 2003) - Jupiter Research, a division of Jupitermedia Corporation (Nasdaq: JUPM), today announced that online airline ticket sales in 2003 will grow to $19 billion, a 14% increase over the $16.8 billion in sales in 2002. This online growth is a marked contrast to the 5% decline in airline passengers that Jupiter Research expects this year. "Despite the turmoil in the airline industry, online airline ticket sales will continue their strong growth in 2003," said Jared Blank, senior analyst with Jupiter Research. "Although fewer people are flying than in past years, today's travelers are taking advantage of the lower fares and customer service features only found online."
Based on an April 2003 forecast by Jupiter Research, Jupiter Research's new report "2003 Online Airline Ticket Sales: Measuring the Impact of War and SARS" found that 34% of airline ticket sales to leisure and unmanaged business travelers will take place online this year, compared to the 28% of tickets that were sold online in 2002. "The efforts made by airlines to push travelers to their Web sites are definitely paying off this year, especially for low cost carriers," Blank adds. "Airlines will also benefit from the growth of the online population, as 2.5 million more people will purchase airline tickets online in 2003 than in 2002." The report also notes that because 90% of online airline ticket sales are for domestic flights, SARS has not had as great an impact on online sales as it has on the industry as a whole.
The report also finds that, unfortunately for airlines, the growth of the online channel will not signal a financial turnaround for most carriers. The slow economy, drop in business travelers, depressed fares and intense competition from low cost carriers will make 2003 another difficult year for the airline industry. "The Web is a bright spot for airlines, but it will not be bright enough to improve their shaky financial situations," Blank said.
The complete findings of this report are immediately available to Jupiter Research clients online. For more information please contact Kieran Kelly at [email protected] or call 1-800-481-1212.
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