With a few notable exceptions, U.S. regional airlines showed continued strong increases in traffic and capacity in October, compared to the same month last year.

Air Wisconsin reported it had enplaned 1.3 million more passengers than it had at this time last year. American Eagle Airlines, the nation's largest regional airline, said its system-wide traffic for October increased 18.4 percent from the same month last year, while capacity increased 13 percent and its system load factor was 64.3 percent, up three points year over year.

But Midwest Express Holdings [NYSE: MEH] said Midwest Connect, operated by its wholly owned subsidiary, Skyway Airlines, experienced decreases in traffic and capacity, while it posted increases in load factor and yield. In October, Midwest Connect's traffic decreased 11.4 percent on a 16.2 percent decrease in capacity. Year to date, traffic was up 10.7 percent on a 0.3 percent decrease in capacity.

Midwest Connect expects to decrease capacity 15 percent to 17 percent in the fourth quarter compared with fourth quarter 2002.

Meanwhile, the three wholly owned subsidiaries of US Airways [Nasdaq: UAIR] -- Allegheny Airlines, Piedmont Airlines and PSA -- reported a 12.3 percent decrease in revenue passenger miles (RPMs) for the month of October on 15.4 percent less capacity. The passenger load factor was 57 percent, a 2 percent increase compared to October 2002.

Year-to-date 2003, the US Airways Express carriers reported a 15.9 percent decrease in RPMs on 15.6 percent less capacity. The passenger load factor was 52.8 percent, a 0.2 percentage point decrease compared to the first 10 months of 2002.

"Our October traffic results are consistent with what we have seen all year, with modest increases in the number of passengers flying year-over-year and business travelers continuing to change their buying habits and purchasing more leisure-type fares," said B. Ben Baldanza, a US Airways senior vice president. "It's clear that successful airlines will be those that can thrive on less revenue and lower costs because this is what consumers are increasingly demanding."