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FAA forecasts air travel to more than double over the next decade


US Federal Aviation Administration has released its annual airline traffic forecast, predicting that air travel will more than double in the US over next 20 years. The FAA 20-year forecast predicts passenger numbers on US airlines will rise by 3.5% from 2010 to 737.4 million passengers in 2011. That figure is projected to grow an average of 2.8% each year during the remaining forecast period to 1.3 billion by 2031.

FAA forecast for passenger enplanements by region for US mainline carriers:


Passenger real yield for US Mainline air carriers:

  • FY2011:
    • Domestic: +2%;
    • International: +5%.

US-listed carriers traded strongly on Tuesday, with American Airlines and Republic Airways leading shares in passenger airlines. Atlas Air shares gained 7.3%, after the cargo carrier's better-than-forecast December quarter financial results. FedEx was 2.3% stronger.

Selected AAD daily share price movements (% change): 15-Feb-2011

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