US airline passenger revenue up 10% in January
US airlines reported a 10% year-on-year increase in passenger revenue in Jan-2011, the 13th consecutive month of revenue growth according to the Air Transport Association of America. Growth was led by a 16% increase in international passenger revenue and a 6.7% increase in domestic revenue.
- US airlines reported a 10% increase in passenger revenue in January 2011, marking the 13th consecutive month of revenue growth.
- The growth in revenue was driven by a 16% increase in international passenger revenue and a 6.7% increase in domestic revenue.
- Passenger traffic (RPMs) rose by 2.5% during the month.
- Cargo traffic also saw growth, with a 4% increase in cargo revenue ton miles in December 2010.
- Despite severe winter storms causing disruptions, January's revenue performance was considered "quite good" due to a stronger economy in relation to capacity.
- Fuel prices remain a concern, reaching their highest level since October 2008.
Passenger traffic (RPMs) rose by 2.5% during the month. Cargo traffic, measured in cargo revenue ton miles, increased by 4% in Dec-2010.
ATA stated that despite the severe winter storms that disrupted operations throughout the country, January's revenue performance was "quite good, fuelled principally by a stronger economy in relation to capacity". Fuel remains a concern, with aviation fuel prices hitting their highest since Oct-2008.
Shares in most US carriers traded down yesterday, with US Airways closing 1.8% lower. Atlas Air shares continued their strong upward run, gaining 2.8%.
Selected AAD daily share price movements (% change): 17-Feb-2011
