Air Transport Association Reports 14th Consecutive Month of Revenue Growth, Rising Energy Costs May Challenge Future Months

13 Percent Revenue Growth in February 2011, Cargo Traffic Grew 5 Percent in January 2011

WASHINGTON, March 17, 2011 /PRNewswire-USNewswire/ -- The Air Transport Association of America (ATA), the industry trade organization for the leading U.S. airlines, today reported that passenger revenue,(1) based on a sample group of carriers,(2) rose 13 percent in February 2011 compared to the same month in 2010, marking the 14th consecutive month of revenue growth. Miles flown by paying passengers(3) rose 2.1 percent while the average price to fly one mile rose 10.8 percent. International markets remained especially strong as passenger revenue grew 17 percent, led by a 27 percent increase in Pacific revenue. Domestic revenue grew 11.5 percent, fueled in large part by a 10.5 percent increase in yield.

"Industry revenue growth persisted in February, despite widespread winter storms plaguing airline operations throughout the country, and reflects a strengthening economy and pricing environment buoyed by recent fare hikes attempting to offset rapidly rising energy prices," said ATA Vice President and Chief Economist John Heimlich. "As fuel prices remain at or near historically high levels, U.S. airlines may experience a more challenging revenue environment."

A sample of U.S. airlines(4) saw cargo traffic, as measured in cargo revenue ton miles, rise 5 percent year over year (down 2.7 percent domestically but up 11.0 percent internationally) in January 2011. February 2011 cargo data is not yet available.

ABOUT ATA

Annually, commercial aviation helps drive more than $1 trillion in U.S. economic activity and nearly 11 million U.S. jobs. ATA airline members and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic. For more information about the airline industry, visit www.airlines.org and follow us on Twitter@airlinesassn.

(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.

(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, FedEx, Hawaiian, JetBlue, Southwest, United, UPS 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).

SOURCE Air Transport Association