Pent-up demand and smart strategies on capacity are keeping US airlines flying high
In 2017, airline industry labour costs rose as new contracts were signed. Oil and fuel prices edged up. No matter: Pent-up demand for air travel and restraint in adding capacity are keeping US airlines — both network and value carriers — in the black. Through Q2 of 2017, the airlines had enjoyed 17 straight quarters of profitability. That year, not only was operating revenue up — to a combined US$2.4b — but for the first time in a while, combined passenger yield was rising as well. A return to growth in passenger yield is an example of the industry’s resilience. Passenger yield fell double digits from 2014 through 2016, hitting a year-over-year low in Q3 2016 of 13.4 cents. The system-wide yield by Q2 2017 was 13.9 cents, after finally beginning to rise. <br/>
https://portal.staralliance.com/imagelibrary/news/hot-topics/2018-01-17/general/pent-up-demand-and-smart-strategies-on-capacity-are-keeping-us-airlines-flying-high
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Pent-up demand and smart strategies on capacity are keeping US airlines flying high
In 2017, airline industry labour costs rose as new contracts were signed. Oil and fuel prices edged up. No matter: Pent-up demand for air travel and restraint in adding capacity are keeping US airlines — both network and value carriers — in the black. Through Q2 of 2017, the airlines had enjoyed 17 straight quarters of profitability. That year, not only was operating revenue up — to a combined US$2.4b — but for the first time in a while, combined passenger yield was rising as well. A return to growth in passenger yield is an example of the industry’s resilience. Passenger yield fell double digits from 2014 through 2016, hitting a year-over-year low in Q3 2016 of 13.4 cents. The system-wide yield by Q2 2017 was 13.9 cents, after finally beginning to rise. <br/>
