ATA Reports Slower Growth in June Air Travel Spending

ATA Reports Slower Growth in June Air Travel Spending

“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,(3) 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(4) 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.

(1) As defined by the Bureau of Transportation Statistics, “revenues from the air transportation of passengers” in scheduled air service, not including amounts paid to change tickets, transport baggage or perform other types of ancillary services.

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(2) Based on data reported to ATA by Alaska, American, Continental, Delta, JetBlue, United and US Airways, including data for Air Midwest, Air Wisconsin, Allegheny, American Eagle, Atlantic Coast, Atlantic Southeast, Chautauqua, Comair, Continental Express, Executive, Freedom, Horizon, Mesa, Mesaba, Piedmont, Pinnacle, PSA, Shuttle America, SkyWest and Trans States. Data for all reporting U.S. airlines is available on a time-lagged basis from the Bureau of Transportation Statistics (www.bts.gov).

(3) Previously, ATA monthly press releases cited the number of passengers; to align more closely with the per-mile price statistics, ATA is now reporting traffic on a total mileage basis.

(4) Based on data reported to ATA by Alaska, American, Continental, Delta, JetBlue, Southwest, United and US Airways. Data for all reporting U.S. airlines is available on a time-lagged basis from the Bureau of Transportation Statistics (www.bts.gov).

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