Regional Growth Slows

Total regional passenger traffic rose only 3.1 percent in 2006, according to the Velocity Group, which tracks industry data, which added the industry produced the slowest rate of growth in seven years. U.S. regional airline industry traffic growth moderated considerably in 2006 with aggregate scheduled enplanement activity reaching 155.5 million passengers, up only 3.1 percent over 2005 levels, said Velocity Group Partner Doug Abbey.
“The last time regional airlines posted single-digit aggregate passenger gains was in 2001, prior to the current phase of airline industry restructuring which began immediately after 9/11,” Abbey said. Revenue passenger miles (RPMs) in 2006 increased 6.9 percent year-over-year, while available seat miles (ASMs) decreased by a modest 1.1 percent in 2006. Passenger load factor increased four basis points, from 70.4 percent in 2005 to 74.4 percent last year. The total number of departures performed decreased by 3.4 percent. In 2006, the 25 largest individual regional airlines accounted for more than 98 percent of all scheduled passenger activity and 99.2 percent of all RPMs in the sector. For a complete report with charts see the April 23 issue of Regional Aviation News.