The ATA reported a 15% year over year decline in June cargo traffic and a 18% decline in total passenger demand. The ATA reports:
WASHINGTON, Aug. 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 21 percent in July 2009 versus the same month in 2008 – the ninth consecutive month in which passenger revenue has fallen from the prior year.
Four percent fewer passengers traveled on U.S. airlines[1] in July while the average price to fly one mile fell 18 percent, a modest improvement over the 21 percent year-over-year yield decline observed in June. Revenue declines extended beyond the mainland United States to the trans-Atlantic, trans-Pacific and Latin markets.
“While the modest improvement in demand from June to July would normally be cause for cautious optimism, the fact is that the number of air travelers continues to fall despite double-digit declines in fares. Clearly, with the difficult economic environment, demand for air travel remains weak,” 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 15 percent year over year (11 percent domestically and 18 percent internationally) in June 2009, the 11th consecutive month of declining volumes. July 2009 cargo data is not yet available.
Source: ATA
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.