Airline Passenger Miles Grow 2.8% in October

According to the Bureau of Transportation, system revenue passenger miles were 69.6 billion in October 2013. This was an increase of 2.8% compared to Otcotber 2012. This is the fastest rate of growth in SRPM since February 2012 and the second fastest rate of growth since May 2011. Also, it is the sixth consecutive month of growth in the month-over-month rate of change. The annual rate of change has been growing faster each of the last six months. It is growing at its fastest rate since May 2012. Real disposable income, a good leading indicator for passenger miles, is growing at a modest, but consistent, rate as we head into 2014. Therefore, it appears that the accelerating growth in SRPM should continue for several months at least. This would be very positive news for aerospace industrial production. Our aerospace page has data on all of the leading indicators of aerospace industrial production.