US Airlines Sees Strong Growth in Passenger Revenue

US Air Transport Assn. said that passenger revenue rose 13% in February compared to the year-ago period, marking the 14th consecutive month of year-over-year revenue gains. RPMs rose 2.1% while average price per flown mile (yield) climbed 10.8%. The information was based on data from most US majors excluding Southwest Airlines.

ATA said that international markets “remained especially strong” as passenger revenue grew 17%, led by a 27% increase in Pacific revenue. Domestic revenue grew 11.5% largely driven by a 10.5% rise in yield.

ATA VP and Chief Economist John Heimlich noted the revenue growth occurred “despite widespread winter storms plaguing airline operations throughout the country.” He said it reflected “a strengthening economy and pricing environment” but cautioned “As fuel prices remain at or near historically high levels, US airlines may experience a more challenging revenue environment.”

Taken from atwonline.com, By Perry Flint March 18, 2011