ATA reports decline in October passenger demand.

Press Release Summary:



ATA reported that passenger revenue, based on sample group of carriers, fell 15% in October 2009 versus same month in 2008. This marks 12th consecutive month in which passenger revenue has declined from prior year, fueled primarily by 11th consecutive month of ticket price declines. Three percent fewer passengers traveled on U.S. airlines in October, while average price to fly one mile fell 13.5%. U.S. airlines also saw cargo revenue ton miles decline 3% year over year in Sept 2009.



Original Press Release:



Air Transport Association Reports Decline in October Passenger Demand, September Cargo Traffic



Drop in Travelers Continues, Despite 11th Consecutive Month of Ticket Price Reductions

WASHINGTON, Nov. 20, 2009 - The Air Transport Association of America (ATA), the industry trade organization for the leading U.S. airlines, today reported that passenger revenue, based on a sample group of carriers,[1] fell 15 percent in October 2009 versus the same month in 2008. This marks the 12th consecutive month in which passenger revenue has declined from the prior year, fueled primarily by the 11th consecutive month of ticket price declines.

Three percent fewer passengers traveled on U.S. airlines[1] in October, while the average price to fly one mile fell 13.5 percent. Passenger revenue declines extended beyond the domestic United States, particularly in trans-Atlantic and trans-Pacific markets.

"With U.S. unemployment surpassing 10 percent in October, these results for air travel demand come as little surprise. Economic conditions suggest that pressure to generate revenue will remain intense for the foreseeable future," said ATA President and CEO James C. May.

Also reflecting a weak global economy is the continued decline in cargo traffic. U.S. airlines[2] saw cargo revenue ton miles decline 3 percent year over year (2 percent domestically and 4 percent internationally) in September 2009, the 14th consecutive month of declining volumes. October 2009 cargo data is not yet available.

Annually, commercial aviation helps drive $1.1 trillion in U.S. economic activity and more than 10 million U.S. jobs. On a daily basis, U.S. airlines operate nearly 28,000 flights in 80 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo.

ATA airline members and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic. For additional industry information, visit www.airlines.org.

[1] Based on data reported to ATA by Alaska, American, Continental (incl. Micronesia), Delta (incl. NWA), JetBlue, United and US Airways; also includes data for Air Midwest, Air Wisconsin, Allegheny, American Eagle, Atlantic Coast, Atlantic Southeast, Chautauqua, Comair, Continental Express, Executive, Freedom, Horizon, Mesa, Mesaba, MidAtlantic, Piedmont, Pinnacle, PSA, Shuttle America, SkyWest and Trans States.

[2] Based on data reported to ATA by Aloha, Alaska, American, Continental, Delta (incl. NWA), FedEx, Hawaiian, JetBlue, Midwest, Southwest, United, UPS and US Airways.

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