» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 128 | NO. 176 | Tuesday, September 10, 2013

Traffic Dips but Revenue Rises at Southwest

The Associated Press

Print | Front Page | Email this story | Comments ()

DALLAS (AP) – Passenger flew fewer miles on Southwest Airlines Co. in August but they paid more per mile than a year ago.

The company, which also owns AirTran Airways, said Monday that passenger revenue for every seat flown one mile rose 4 percent compared with August 2012. That follows an increase of 4 percent to 5 percent for July.

The figure is a closely watched statistic in the airline business, and it rises when airlines are able to charge higher average fares either by raising prices or selling fewer tickets at discounted sale prices.

Last week, Delta and US Airways reported similar increases in the revenue figure. Helane Becker, an analyst for Cowen and Co., said the trend was due to strong demand and more late bookings – travelers who buy tickets on short notice usually pay higher fares.

Southwest said that traffic dropped 2 percent, as passengers flew 9.17 billion miles last month, down from 9.36 billion miles in August 2012.

Southwest and AirTran added seats, however, with capacity rising 1.4 percent. Part of that increase came from longer average trips – up 4.8 percent, to 1,007 miles.

Because traffic dropped and capacity increased, the average flight was less full. Occupancy averaged 81.3 percent last month, down from 84.2 percent in August 2012.

In the first eight months of the year, traffic has inched up by 0.8 percent and capacity has expanded by 1.6 percent.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 87 87 14,804
MORTGAGES 80 80 19,410
FORECLOSURE NOTICES 21 21 3,817
BUILDING PERMITS 142 142 35,472
BANKRUPTCIES 62 62 14,096
BUSINESS LICENSES 62 62 5,053
UTILITY CONNECTIONS 99 99 21,532
MARRIAGE LICENSES 37 37 4,594

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.