The growth in the US airline industry also resulted in increasing employment opportunities.
Because the major portion of revenue comes from passenger services, cargo revenue forms a small portion of total airline revenue of major US airlines.
There has been a recent substantial increase in profit-sharing expenses related to the employees, as the profitability of major US airlines increased.
The falling crude oil prices in 2014 helped reduce the fuel cost burden on airline companies.
Despite the decline in crude oil prices, airlines in US have continued to hike their airfares.
In 3Q14, the passenger yield, or fares paid per passenger per mile, of all major airlines except Alaska increased.
The CPI includes prices of all scheduled domestic and international commercial airline trips on certified carriers from around 87 cities, but it excludes business trips.
The dollar value of airline tickets sold by US-based travel agencies rose 2.24% in October to $7.5 billion.
Growth in capacity and capacity utilization is dependent on the demand for air travel.
Among the top six US airlines, Alaska Airlines continues to have the highest mainline domestic ASM, with year-over-year growth of 10.3% in October.
Increased RPM is positive for an airline, meaning more passengers are using their service. This results in topline growth, provided the yield also increases.
Although trucking is the most widely used mode of transportation, the fastest growing mode of transport is by air.
The airline industry drives $1.5 trillion in US economic activity and more than 11 million US jobs.
Economic growth in the US continues to improve, due to increased real disposable income and consumer spending. These are main drivers of leisure travel.
Two drivers— declining input costs and traffic growth—will continue to support growth in global airline industry profitability in the next 12 months.
Just as in 2Q14, North American airlines have continued to outperform their peers from other regions in 3Q14.
The recovery in cargo traffic was driven by growing trade activity in emerging markets in Asia and was slightly offset by the slowing European economy.
Despite an increase in aircraft deliveries, capacity grew at a slower rate than demand. Load factor improved slightly to 80.3% in September, compared to August.
International airline traffic is growing at a much faster rate than passenger numbers because of the strong performance in long-haul markets.
The Middle East recorded the highest airline passenger growth rate of 15.8%, which was higher than the industry average of 7.2% in September.