The Financial Post reports in its Thursday edition that thanks to cheap fuel, airlines are cutting ticket prices and travellers have noticed. A Bloomberg dispatch to the Post says that global passenger data show that air travel demand started the second quarter at growth rates unseen in six years, and U.S. carriers hauled more passengers than ever before last year. Worldwide, first quarter air travel costs dropped about 10 per cent compared with the same period a year ago. About one-third of those costs can be linked to cheaper fuel, according to Savanthi Syth at Raymond James. "Airline fares are set based on demand. But when fuel is low, and when a third of your cost drops by 50 per cent, when it drops that much you do tend to grow," she said from St. Petersburg, Fla. "You can offer lower fares and stimulate traffic." Airlines are increasing use of aircraft they already own by adding extra flights like discounted red-eyes, according to Ms. Syth. "At high fuel prices that red-eye flight didn't make sense," she said. Rising demand spurred by lower prices has helped reduce nationwide supplies after they neared a seasonal 15-year high in the first quarter. Airlines hauled a record 822 million travellers last year.