Mon, Apr 06, 2009
LCC Reports Flat Numbers, But American Takes A Big Dip
Two Dallas, TX-based carriers have
released their March 2009 traffic numbers... and let's just say
"flat" was the best they could hope for.
Low-cost carrier Southwest Airlines announced Monday it flew 6.7
billion revenue passenger miles in March 2009, a level "essentially
flat" with March 2008 numbers. The carrier also noted its efforts
to reduce capacity have apparently been successful, with the 1.5
percent decrease in available seat miles closely matching a 1.2
percent drop in load factor.
Disturbingly, Southwest's revenue per ASM decreased "in the 10
to 11 percent range" compared with March 2008 numbers... meaning
seats that are filled with passengers are generating substantially
less revenue for the airline.
Things were much worse for American Airlines, headquartered to
the west in Fort Worth. On Friday, American reported a March load
factor of 79.2 percent, a decrease of 4.8 points versus the same
period last year. Traffic decreased 10.9 percent and capacity
decreased 5.6 percent year over year.
The airline added its domestic traffic decreased 10.6 percent
year over year in March 2009, on 8.2 percent less capacity.
American's international traffic decreased a staggering 11.6
percent relative to last year, on a capacity decrease of just 1.1
percent.
American, like other legacy carriers, had banked heavily on
lucrative international traffic bolstering their bottom line during
an economic recession. That plan may be in need of
reconsideration.
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