Airline Passenger Miles Up 1.5% in March
According to the Bureau of Transportation, system revenue passenger miles were 72.8 billion in March 2013. This was an increase of 1.5% compared to March 2012. This was the fourth month-over-month increase in passenger miles in the last five months. In the first quarter of 2013, passenger miles were up 1.1% compared to the first quarter of 2012. However, the annual rate of change continued to grow more slowly. In fact, the annual rate of growth, now 0.5%, is the slowest it has been since May 2010. But, based on recent trends in passenger data, the annual growth rate should start accelerating again soon. Also, real personal income, a good leading indicator for passenger miles, has seen accelerating growth since July 2012. To see the trends in aerosapce, go here.
This article by Bloomberg highlights the impressive orders for Boeing and Airbus at the 2013 Paris Air Show. The article reports that airlines are growing concerned about the length of time it is taking for their orders to be fulfilled by the airplane manufacturers. Therefore, Boeing and Airbus are trying to ramp up their monthly production but are being held back, at least in part, by production capacity at their parts suppliers. This is a positive sign for future business at aerospace part manufacturers and their need for additional capital equipment.
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