Weekly News Summary - September 19, 2006

The U.S. Bureau of Transportation Statistics (BTS) said its reporting U.S. airlines operated 5.2 million domestic and international flights during the first six months of 2006, 4.6% fewer than were operated during the same period in 2005. Domestic fights were down 5.2% from the previous year while international flights were up 2.6%.

In the most recent month, June, U.S. airlines operated 889,200 scheduled domestic and international flights, down 4.9% from the number of flights operated in June 2005. The number of domestic flights declined 5.6% in June from a year earlier while international flights increased 3.0%.

Flight stage length, the average non-stop distance flown per departure, was up 3.6% in the first six months. In June, flight stage length was up 4.0%.

Passenger trip length, the average distance flown per passenger, was up 1.7% in the first six months. In June, passenger trip length was up 2.1%.

Other total system comparisons from June 2005 to June 2006, and from the first six months of 2005 to the first six months of 2006, are presented in the graphs below. (All charts are based on BTS data):

Domestic flight stage length, the average non-stop distance flown per departure, was up 2.8% in the first six months. In June, domestic flight stage length was up 3.0%.

Domestic passenger trip length, the average distance flown per passenger, was up 1.2% in the first six months. In June, domestic passenger trip length was up 0.8%.

Reporting U.S. Carriers: International System Comparisons

International flight stage length, the average non-stop distance flown per departure, was up 2.3% in the first six months. In June, international flight stage length was up 3.1%.

International passenger trip length, the average distance flown per passenger, was down 0.2% in the first six months. In June, international passenger trip length was up 0.7%.

Additional traffic numbers are available on the BTS website at http://transtats.bts.gov. 09-18-2006.

Sabre Airline Solutions' consulting business predicts that a new breed of airline, described as a value-focused carrier (VFC), will gain a significant share of the leisure and cost-conscious business travel market. Sabre defines a VFC as an airline that competes on a combination of price and a product in very specific markets, while managing costs tightly. VFCs currently handle 12% of this traffic around the world, compared to 6% in 2001, Sabre estimates, and will ultimately gain a significant share of the market for leisure and cost-conscious business travel. 09-17-2006.

Boeing's World Air Cargo Forecast 2006/2007 predicts that world air cargo growth will expand at an average annual rate of 6.1% during the next two decades, with a three-fold increase in worldwide air freight. Boeing expects that the growth of Asian air cargo markets will exceed the expectations of the forecast from two years ago, with the domestic Chinese and intra-Asian markets expanding 10.8% and 8.6% per year, respectively. In addition, Asia-North America will average 7.1% and Europe-Asia will average 6.9%. More mature markets, such as North America and intra-Europe, will grow more slowly than the world average, as will routes involving Latin America and the Middle East. Europe-Southwest Asia will experience slightly higher than average growth, at 6.2%. Overall, Boeing predicts the world freighter fleet will increase to 3,563 airplanes from 1,789 during the 20-year forecast period, with the greatest growth in wide body freighters such as the Boeing 747, 777 and 767. This category ultimately will represent 64% of the fleet, compared to 50% today, eventually constituting more than 90% of total freighter capacity. Of the 2,983 freighters predicted to join the fleet, 1,209 would be replacements for retired aircraft and 1,774 for growth. More than 75%, 2,217 airplanes will come from passenger/combi-to-freighter modifications, while 766 will be new production freighters. 09-17-2006. (Top)