Tuesday, June 22, 2010

As Fares Rise Sharply, Airline Revenues Are Booming

Anyone who has flown lately on relatively short notice has seen it: Fares are up significantly on most routes.

With demand up, supply down and oil prices stable, airlines are feeling the benefits, even if passengers paying more to travel in all of those cramped planes are not.

In May, says the Air Transport Association of America, airline revenues (including fares, all of those fees and other factors) rose 21 percent over May of 2009, based on a sampling of carriers. It was the fifth consecutive month of revenue growth, the airline trade group says.

About 2 percent more passengers traveled on U.S. airlines1 in May, while the average price to fly one mile rose 17 percent. Meanwhile, international passenger revenue rose 36 percent, led by a 51 percent gain in trans-Pacific markets.


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