Passenger Miles Up 1.5% in September 2013

According to the Bureau of Transportation, system revenue passenger miles were 67.0 billion in September 2013. This was an increase of 1.5% compared to September 2012. This was the fifth month-over-month increase in a row. However, the rate of increase has slowed in each of those five months. Passenger miles have grown significantly faster the last five months than at any time since the early summer of 2011. The annual rate of change has accelerated the last five months. It should continue to grow faster for at least the next couple of months. This would be positive news for the rate of change in aerospace industrial production, which could be set to bottom out soon. Real disposable income, a good leading indicator for passenger miles, is growing at a modest rate as we head in 2014. Therefore, longer term it is likely that airline passenger miles will see accelerating growth. Our aerospace page has data on all of the leading indicators of aerospace industrial production.