July 4th travel plans to fizzle, AAA says

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Anxiety over the slumping economy will keep more Americans closer to home this Fourth of July weekend, despite lower gasoline prices.

A survey for AAA released today predicted 37.1 million Americans will travel over the holiday weekend, a 1.9% decline from the same weekend in 2008. Record gasoline prices put a serious damper on last year’s July 4th weekend travel, which fell 10.5% from the July 4th weekend in 2007.

Of the 37.1 million Americans traveling, only 5% will travel by air. But the number of airborne travelers is expected to increase by 4.9% over last year’s July 4th weekend, mainly because airlines have cut airfares to encourage more travel during tough economic times.

Meanwhile, road travel — still by far America’s favorite mode of transportation -- is expected to drop by 2.6%, to 32.6 million from 33.4 million, last July 4th weekend, according to the auto group’s survey, conducted by Boston-based IHS Global Insight.

Last year, gasoline prices were $1.30 per gallon higher during the holiday weekend. But gas prices have been creeping up again over the last two months, which may be causing the pullback on road-trip plans this summer, said Geoff Sundstrom, a spokesman for AAA.

He said the latest numbers reflect America’s continuing anxiety over a weakening economy and high unemployment rates.

“It’s a serious worry of a substantial part of the population,” he said.

The Automobile Club of Southern California is expected to release an analysis of holiday travel trends in the Southland next week.

-- Hugo Martin