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Demand for Air Travel Up, but Airlines Cautious

August 20, 2010 By: George Dooley

Air passenger revenue, based on a sample group of carriers, rose 20 percent in July 2010 compared to the same month in 2009, marking the seventh consecutive month of revenue growth. The pace of improvement slowed from the 25 percent year-over-year gain realized in June, however, the Air Transport Association reports.

Approximately 1 percent fewer passengers traveled on U.S. airlines in July while the average price to fly one mile rose 17 percent. International passenger revenue rose 36 percent, led by a 52 percent gain in trans-Pacific markets.

“Demand for air travel remains well above last year’s depressed levels, but the industry is mindful of cautionary notes about the health of the overall economy,” said ATA President and CEO James C. May.

U.S. airlines saw cargo traffic, as measured in cargo revenue ton miles, rise 19 percent year over year (8 percent domestically and 28 percent internationally) in June 2010, driven by increased international trade. July 2010 cargo data is not yet available.

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By George Dooley | August 20, 2010
July marks seventh consecutive month of revenue gains.
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