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U.S. Airlines Report Increased Revenue, Decreased Demand
August 26, 2010
For the seventh consecutive month in July, U.S. airlines reported revenue growth, although they simultaneously reported a slight decline in passenger demand, the Air Transport Association of America (ATA) announced last week.
Compared to July 2009, passenger revenue rose 20 percent last month, according to ATA. Meanwhile, passenger demand fell 1 percent on the heels of a 17 percent increase in the average price to fly one mile.
"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," ATA President and CEO James C. May said in a statement.
July traditionally is one of the busiest months for air travel due to summer holidays, as travel typically peaks in the summer and drops off in the fall.
Separately, ATA last week released its 2010 economic report, which found that every day, 2 million people, 50,000 tons of cargo and more than a million bags travel onboard 25,000 U.S. airline flights to destinations near and far, and that commercial aviation supports nearly 11 million U.S. jobs and contributes $731.5 billion to U.S. gross domestic product.
"As we all work toward a stronger economic future, it is a particularly opportune time to focus on the contributions that commercial aviation makes toward revitalizing the U.S. job market and creating a brighter future through economic development," May said. "It is more important than ever for both the airline industry and those in government to make the right choices to foster prudent investment in commercial aviation."
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