US airlines report increase in passenger numbers for April

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US airline stocks rose in trading early in the week after April passenger numbers were reported, showing increases in traffic over March.

US Airways said that its boarding numbers declined in April by five percent, but that its load factor – or percentage of seats filled – was 84.2 percent, an increase over the 83.2 per cent reported for the same month last year.

For the previous month, US Airways reported that its mainline traffic numbers has dropped by 8.9 percent, with a load factor of 81.9 percent.

Over the past several months, airlines have introduced sharp reductions in airfares to stimulate passenger demand and fill seats. Several carriers, including American, Continental, Delta, United and US Airways cut services to Mexico due to the swine flu outbreak there.

Mexico services represent less than two percent of US airline business, and analysts are indicating that the virus outbreak should not have a real impact on earnings unless it continues to spread and scares more passengers away from flying.

Avondale Partners analyst Bob McAdoo noted that the numbers were helped by Easter occurring in April this year. He said: “These results suggest that the demand/ revenue environment has stabilized, at a minimum, and possibly even improved slightly from March.”

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