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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.

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