Nearly every major
U.S. airline in September at least slightly increased domestic passenger
traffic versus a year earlier, which hasn't been the case for each of them during
the course of 2013. Year to date, American, Delta, United and Virgin America
each still have lower domestic traffic totals versus 2012.
An indicator of
business travel, September airline traffic was higher, but only modestly,
almost across the board, including at American (0.5 percent), Delta (1
percent), JetBlue (1.6 percent), Southwest (1.2 percent), United (0.2 percent)
and US Airways (2.2 percent). Alaska Airlines' growth of 4.1 percent was highest
among the majors, though that was lower than its 7.7 percent year-to-date 2013
traffic increase. Virgin America, meanwhile, experienced an 8.4 percent
reduction, more pronounced that its 1.5 percent year-to-date decline.
Domestic capacity
also was higher in September at most majors, with the exceptions of United
(down 1.5 percent year over year) and Virgin America (down 7.3 percent).
September traffic
and capacity on international routes each grew at American, Delta, United and
US Airways, though generally by no more than a few percentage points. US
Airways reported the highest such growth, with traffic rising 5.2 percent and
capacity up 3.9 percent.
By region, AA's
traffic and capacity in September shrank modestly on transatlantic routes,
while Delta, United and especially US Airways showed growth. In Latin America,
Delta posted big growth, with traffic up 13.8 percent year over year and capacity
up 15.5 percent. AA also increased operations in that region while United's
traffic dropped a few percentage points. On transpacific routes, AA led the U.S.
majors with traffic and capacity increases of 8.4 percent and 12.5 percent,
respectively, while United's traffic fell back 4.5 percent.
Meanwhile,
estimated passenger revenue per available seat mile increased in September year
over year at every major U.S. carrier except United, which reported PRASM that
was "about flat." The largest reported jumps came from Virgin America
(11 percent), JetBlue (9 percent) and Southwest (7 percent to 8 percent). US
Airways estimated its consolidated PRASM in September rose about 6 percent
while Delta reported a 5.5 percent increase and AA estimated 3.2 percent
growth.
Wall Street
analysts indicated the traffic and PRASM reports helped to keep them generally
bullish on the sector. In a research note issued this week, Cowen Securities
analyst Helane Becker wrote, "Revenue growth
looks to have accelerated in 3Q driven by strong demand."