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US holiday driving to hit 8-yr high this wkend-AAA

NEW YORK, Aug 26 (Reuters) - The number of U.S. travelers jumping into their cars this Labor Day holiday weekend is expected to be the highest in eight years, as more Americans favor driving over flying, a travel group said on Tuesday.

Approximately 28.2 million people plan to drive 50 miles or more this weekend, up 2.2 percent from last year to the highest level since 1995, according to a survey by the American Automobile Association (AAA).

The increase in driving comes amid shrinking capacity in the U.S. airline industry since the Sept. 11, 2001 attacks, security delays at airports and a trend toward driving among travelers on shorter trips with increased flexibility.

"Airlines have been cutting back flights, and so there are obviously fewer seats available for travelers," said Justin McNaull, a spokesman for the AAA. "Additional security after September 11 has also led a lot of people to reevaluate the time it takes to take a mid-range flight."

The number of people people planning to travel by plane for the Labor Day holiday is down 2.6 percent from last year to 3.7 million, according to AAA.

Aside from potentially infuriating traffic jams, the high volume of drivers will put pressure on already thin national stockpiles of gasoline, which are dragging along at nine-month lows, according to U.S. government figures.

Gasoline prices this week shot up to an all-time high at the pumps, near an average of $1.75 a gallon due to disruptions at refineries following last week's massive blackout and a pipeline outage that forced Arizona residents to line up for fuel.

The supply disruptions have mingled with strong gasoline consumption in the past four weeks, according to the U.S. Department of Energy.

Demand for gasoline typically declines after the Labor Day holiday as summer vacations end and the school year resumes.