U.S. airlines are having a very good year, thanks to a more streamlined schedule -- i.e., fewer flights -- and an assortment of new fees on passengers.
The Air Transport Association of America (ATA), the industry trade organization for the major U.S. airlines, reports that passenger revenue, based on a sample group of carriers, rose 17 percent in August 2010 compared to the same month in 2009.
It marks the eighth consecutive month of revenue growth, though the group notes the pace of improvement slowed from the 25 percent and 20 percent year-over-year gains realized in June and July, respectively.
So does this mean more people are eagerly taking to the skies? Not really. It basically means that roughly the same number of people are flying. They're just paying more for the privilege.
Approximately one percent more passengers traveled on a sample of U.S. airlines in August while the average price to fly one mile rose 14 percent. International passenger revenue rose 27 percent, led by a 44 percent gain in trans-Pacific markets.
Passenger spending is up
"Spending on air travel remains well above last year's depressed levels, but the industry is wary of a possible slowdown in the nation's economic recovery as it enters the traditionally slower fall period," said ATA President and CEO James C. May.
Airlines are also making more money hauling cargo. A sample of U.S. airlines saw cargo traffic, as measured in cargo revenue ton miles, rise 15 percent year over year in July 2010, driven by increased international trade. August 2010 cargo data is not yet available.
Annually, commercial aviation helps drive more than $1 trillion in U.S. economic activity and nearly 11 million U.S. jobs.
On a daily basis, U.S. airlines operate approximately 25,000 flights in 80 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo.
Most major airlines now charge fees for checked bags, often adding more than $100 to the price of a ticket. Southwest Airlines, which does not charge fees for checked bags, has made that distinction the centerpiece of its current advertising campaign.
Earlier this year Spirit Airlines expanded the bag fee frontier even further by introducing a fee for carry-on luggage.
