The United States airline industry has experienced a 1% decrease in total number of flight passengers for the month of July. This was according to the Air Transport Association (ATA), who also said that the biggest domestic carriers have recorded decreased levels for certain key revenue growth measures. This is the scenario during one of the busiest months for holiday travel.
Nonetheless, "demand for air travel remains well above last year's depressed levels, notes ATA president James May.
On the other hand, the average price to fly one mile increased by 17% compared to last year's but was noted to be less than the previous month's 22% increase. Another are where weakness was seen was in the airline industry's shares, which was 3.78% off index.
Analysts have predicted revenue dips as the year approaches the leaner months of fall and with the economy remaining fragile. Although overall, the industry has generated higher revenues this year than it did last year and this prompts the realization of merger plans between United Airlines and Continental Airlines by the end of 2010.
The airline business is still up for more challenges up ahead as it has been systematically unable to increase its profitability above break even levels.
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