State of the Airlines

Tuesday, March 01, 2005

NEWS: Airline Levels Looking Up in February

If I am to judge by two early reports the airline are continuing to see increased levels over last year. Both AirTran and Continental Airlines are already reporting increases in both load factor and revenue passenger miles for February. Its a good trend but as we all have learned more butts in seats do not equate to profits.

UPDATE: Southwest is reporting Feb. was up for them too

In my opinion airfares are still not high enough to counteract fuel prices. Airlines continue to have problems getting airfares to normalize due to continuing overcapacity. The situation marginalizes all of this great news about more people wanting to fly.