Monday, September 18, 2006
Traffic Watch
Calyon Analyst Ray Niedl reported regional carriers experienced a traffic growth of 6.3 percent during August, while capacity grew 1.5 percent. He said that early indications show traffic and revenue per available seat mile (RASM) were hit by additional security measures imposed during the month, a trend continuing into September. However, he expects the impact to be temporary and the harm to third quarter earnings to be minor.
Air Wisconsin (AWAC) (US Airways)
Traffic for Air Wisconsin was down across the board in August, when revenue passenger miles (RPMs) dropped 20.5 percent to 202.5 million. Available Seat Miles (ASMs) declined 14.9 percent to 272.5 million. Load factor was down 5.30 points to 74.3 percent, while passenger enplanements declined 18.3 percent to 515,479. Year to date, the airline flew 1.557 billion RPMs, down 21.5 percent as ASMs declined 18.3 percent to 2.139 billion. Load factor was down three points to 72.8 percent. It flew 4,006,166 passengers, down 18.4 percent from the year-ago period.
American Eagle & Executive Airlines (American)
Systemwide traffic for American Eagle increased 9.3 percent in August to 792.5 million RPMs, while capacity increased 3.8 percent to 1.066 billion ASMs. System load factor rose 3.7 points to 74.3 percent, with passenger boardings increasing eight percent to 1,899,738. Year to date, the carrier increased RPMs by 15.7 percent to 6 billion while ASMs reached 8.157 billion, an 8.6 percent increased over the year-ago period. Load factor rose 4.6 points to 74.5 percent and passenger enplanements rose 8.5 percent to 14,575,709.
Comair (Delta Connection)
Continuing its struggle with bankruptcy, Comair flew 9.9 percent fewer RPMs in August, when it flew nearly 504.2 million. ASMs for the month were down 16.3 percent to 669.4 million, as load factor rose 5.3 points to 75.3 percent. Year to date, the carrier flew 3.5 billion RPMS, down 13.1 percent. ASMs were down 20.5 percent to 4.8 billion as load factor increased 6.4 points to 74.6 percent.
Delta Connection (DALQ) (Chautauqua, Freedom, Mesa, SkyWest)
Delta Connection carriers flew one billion RPMs during the month. Percentage differences were not available because SkyWest (SKYW) acquired ASA in September 2005. Connection carriers flew 1.3 billion ASMs, as load factor came in at 77 percent, up 5.6 points. Year to date, the carriers flew 7.7 billion RPMs and 9.8 billion ASMs. Load factor was up six points to 78.8 percent.
ERA
ERA flew 35,206 passengers, down 11.91 percent as RPMs dropped 9.67 percent to 4.8 million. ASMs also dropped 19.08 percent to 7.4 million and load factor rose 6.86 points to 65.84 percent. Year to date, passengers enplaned were 241,437, down 3.45 percent. RPMs declined 0.53 percent to 31.4 million, while ASMs rose 0.32 points to 58.6 million. Load factor was 0.46 percent down to 53.57 percent.
Express Jet (XJT) (Continental Express)
Express Jet's traffic increased in August, when RPMs totaled 955.7 million, up 12.4 percent. ASMs reached 1.223 billion, up 9.9 percent while load factor rose slightly by 1.7 points to 78.1 percent. Block hours totaled 83,941, up 9.1 percent and departures rose 9.4 percent to 45,178. Year to date the carrier flew 6.977 billion RPMs, up 18.1 percent, while ASMs increased 11.3 percent to 8.877 billion. Load factor increased 4.5 percent to 78.6 percent, while block hours were up 11.8 percent to 613,969 and departures rose 9.7 percent to 329,026.
Great Lakes (GLUX) (United, Frontier)
One of the largest providers of Essential Air Service in the nation, Great Lakes generated 12.4 million RPMs, up 17.7 percent from August 2005. ASMs increased only 1.3 percent to 25.5 million, as load factor was up 6.8 points to 48.58 percent. It flew 47,863, up 19.5 percent. Preliminary revenue per available seat mile (RASM) increased 14 percent, from 27.54 cents to 31.39 cents. Year to date, the carrier flew 335,373 passengers, up 15.9 percent as RPMs reached 87.6 million, a 13.7 percent increase. ASMs totaled 192.5 million, up 3.5 percent. Load factor rose 4.1 points to 45.53 percent. RASM was up 16.9 percent to 29.62 cents.
Jazz (ACE) (Air Canada)
RPMs for Air Canada Jazz rose 54 percent in August to 385 million, while ASMs increased 47.6 percent to 512 million. Load factor rose by 3.2 points to 75.2 percent. Year to date, Jazz flew 66.9 percent more RPMs at 2.502 billion. ASMs jumped 65.9 percent to 3,458 billion and load factor rose 0.5 points to 72.4 percent.
Mesa (MESA) (Air Midwest, Mesa Airlines, go!) (America West Express, Delta Connection, US Airways Express, United Express)
Fleet migration East to support US Airways at Charlotte and United Express between Chicago and Dulles forced a reduction in ASMs for Mesa in August. ASMs dropped slightly by 0.6 percent in August, when it flew 817 million. RPMs reached 614 million, an increase of four percent. Load factor was up 3.3 points to 75.2 percent as passengers increased 14.7 percent to 1,398,644. Year to date, RPMs increased 8.85 percent to 4.657 billion while ASMs rose 2.2 percent to 6.079 billion. Passengers were up 13.1 percent to 10,167,853 and load factor increased 4.7 points to 76.6 percent. Its Hawaiian operation, go!, generated 62,367 passenger enplanements, resulting in a 64.5 percent load factor. ASMs for the fledgling airline were 13.8 million, while RPMS reached 8.9 million.
Midwest Air Group (MEH)
Midwest Air Group experienced an 18.1 percent growth in RPMs during August, when it flew 361.7 million. ASMs for the period jumped 9.2 percent to 460.4 million. Load factor rose six points to 78.6 percent. Revenue yield rose 8.6 percent to 14.64 cents, while revenue per available seat mile (RASM) increased 16.4 percent to 12.69 cents. Year to date, the group experienced a 24.4 percent increase in RPMs to 2.785 billion as ASMs rose 17 percent to 3.585 billion. Load factor for the period increased 4.7 points to 77 percent. Revenue yield increased 7.7 percent to 14.27 cents, as RASM increased 13.2 percents to 12.31 cents.
Pinnacle Airlines (PNCL) (Northwest Airlink)
Pinnacle traffic was down during August, as it continued to struggle with Northwest's bankruptcy. While RPMs were only 1.7 percent down at 279.3 million, ASMs dropped 6.2 percent to 494.1 million. It did, however, fly 10.9 percent more passengers at 801,090, with a 3.5 point increase in load factor to 76.8 percent. Pinnacle operated 35,416 block hours in August, nine percent less than the same period last year. Cycles decreased 2.2 percent to 21,759. In August 2006, Pinnacle operated 124 regional jets, 10.8 percent less than the 139 in the fleet during August 2005. Additionally, the average length of a Pinnacle flight was reduced from 517 to 466 statute miles during the same time period. Year to date, the airline flew 5,966,592 passengers, up 13.2 percent as load factor increased 6.3 points to 77 percent. ASMs totaled 3.691 billion, down 3.6 percent while RPMs increased 5.1 percent to 2.843 billion. Cycles grew 1.3 percent to 167,824 as block hours dropped 4.1 percent to 276,987.
Republic (RJET) (Republic Airlines, Chautauqua, Shuttle America) (AmericanConnection, Delta Connection, United Express & US Airways Express)
Republic Airways Holdings (RJET) generated 625 million RPMs, a 64 percent increase over the same month last year. ASMs increased to 850 million, up 49.1 percent. Block hours were 50,683 during August, a 23.3 percent increase over the year-ago period. Load factor was up 6.6 points to 73.5 percent and passengers numbered 1,185,862, up 47.8 percent. Year to date the company carried 8,297,489, up 37.4 percent. Load factor was up 4.8 points to 74.3 percent, as ASMs jumped 42.1 percent to 5.903 billion. RPMs increased 51.9 percent to 4.383 billion, while block hours rose 16.8 percent to 358,769.
SkyWest/Atlantic Southeast (SKYW) (Delta Connection, United Express)
As it winds down one of its most dramatic year-over-year growth rates in its history, SkyWest posted a 101.3 percent increase in RPMs to 1.429 billion and a 96.5 percent increase in ASMs in August to 1.808 billion. The doubling of results come from its acquisition of Atlantic Southeast Airlines (ASA) in September 2005. Load factor for the month was 79.1 percent, up 1.9 points. The airline carried 2,812,001 passengers, up 87.9 percent as block hours rose 85.8 percent to 117,053 and departures gained 64.3 percent to 75,659. Year to date, the combined carriers flew 10.605 billion RPMs, a 113.7 percent jump while ASMs experienced a 103.1 percent increase to 13.370 billion. It flew 21,249,048 passengers during the period, up 95.9 percent. Block hours numbered 858,676, an increase of 83.8 percent while departures rose 63 percent to 566,705. August should be the last month to show such dramatic year-over-year gains since ASA was acquired in September of 2005.
US Airways (LCC) (Piedmont Airlines, PSA Airlines, US Airways MidAtlantic Division)
US Airways regional traffic dropped by a third during August, when it flew 215 million RPMs, down 31.3 percent. ASMs dropped 38.2 percent to 312 million while load factor increased 6.9 points to 68.9 percent. The airlines carried 739,294 passengers, down 11.6 percent. Year to date, the carriers flew 1.904 billion RPMs, down 19.9 percent while ASMs dropped 26.3 percent to 2.744 billion. Load factor was up 5.6 points to 69.4 percent, as enplanements dropped 4.9 percent to 6,083,728.

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