Stronger Air Traffic Trends Continuing

Most major U.S. carriers continue to grow passenger traffic and capacity amid strong travel demand. AirTran, American, America West, Continental and Southwest each reported higher total revenue passenger miles and available seat miles during the month of July. Including Alaska Airlines, which reported slightly lower traffic, all six carriers posted monthly load factors above 80 percent. Other major U.S. carriers are expected to report July figures in the coming days.

At America West, traffic and capacity last month reached record levels for the month of July. At AirTran, all-time monthly records were set for traffic, capacity, load factor and enplaned passengers.

Continental, the only carrier to report estimated unit revenues in monthly traffic reports, said both consolidated and mainline passenger revenue per available seat mile in July grew between 4.5 percent and 5.5 percent.

America West executive vice president of sales and marketing Scott Kirby also highlighted improving revenue trends. "We continue to experience a strong revenue environment driven by passenger demand and pricing," he said. "With ongoing peak travel-day yield management, our yields have continued to increase at a double-digit rate on a year-over-year basis."

Helane Becker, analyst with The Benchmark Co., suggested that record or near-record traffic levels and load factors indicate ongoing improvements for revenue measurements. "We are encouraged by the fact that bookings for August are strong and load factors are up in an environment where airfares are rising," she said in a research note issued this morning. "It remains to be seen whether or not July and August will be strong enough to offset what is sure to be losses in September," a typically weaker month for the airline industry.