Seven Percent Increase Over 2010 Lower Than Expected

The Air Transport Association of America (ATA) reported Thursday that passenger revenue rose 7 percent in June 2011 compared to the same month in 2010, marking the 18th consecutive month of revenue growth. The revenue data is based on a sample group of U.S. carriers.

"While the overall rate of growth in air travel expenditures appears to be slowing, we are encouraged by continued strength in the Latin American and Caribbean markets. We hope to see ongoing revenue growth in July to begin the third quarter," said ATA Vice President and Chief Economist John Heimlich.

The airline industry still faces cost challenges, especially higher fuel expenses. The U.S. Energy Information Administration projects the full-year 2011 average price of U.S. jet fuel will be $3.06 a gallon, more than 40 percent higher than the 2010 average.

Systemwide passenger traffic, as measured by miles flown by paying passengers, rose 0.3 percent while the average price to fly one mile, also known as yield, rose nearly 7 percent for the month.

• U.S. domestic revenue grew nearly 6 percent, as passenger yields increased 6 percent.
• Trans-Atlantic revenue increased 5.6 percent from a year ago.
• Trans-Pacific revenue rose 5.5 percent.
• Latin American/Caribbean revenue grew 22 percent as yields rose 18 percent.

A sample of U.S. airlines saw spending on shipments of freight and mail rise 6 percent year over year (up 1 percent domestically and 9 percent internationally) in June 2011.

FMI: www.airlines.org