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.
Half of the region’s growth will be led by China, which is expected to overtake the US as the world’s largest passenger market by 2030.
European consumer confidence remains low. Growth in Germany, one of Europe’s key economies, slowed due to the Russia-Ukraine crisis.
The US region has the best load factor compared to all other regions, and yields have improved over the past few months.
The global airline industry showed persistence, continuing to report positive growth in traffic and capacity in September. However, the pace is slower than in August.
Lower-end prices were up 9.4% year-over-year, while the upper-end prices were up only 4.5%. This could be evidence that first-time homebuyers are awakening from their slumber, at long last.
countries will continue to innovate in this space. Indeed, the defense sector outlook seems to be rather bright.
There are two distinct trends in global defense spending at the moment—reduced spending in the West, and increased spending in the Middle East and Asia.
Most emerging economies are grappling with aging fleets and equipment. Modernization will drive growth in the short term as a result.
Increasing exports are driving US defense sector growth, helping it to survive the impact of budget cuts.