NEWS RELEASE
WASHINGTON, July 6, 2007 – The Air Transport Association of America (ATA), the industry trade organization representing leading U.S. airlines, today released its quarterly Airline Cost Index. The latest release of this unique index incorporates data through the first quarter of 2007.
“Costs of running an airline continue to rise, more than 10 percent in the first quarter, driven primarily by a 12.6 percent cost surge in fuel,” said ATA vice president and chief economist John Heimlich. “Fortunately, airlines were able to compensate with a 16.7 percent improvement in fuel efficiency and continued vigilance on other controllable items.”
The composite cost index rose to 182.9, up 10.6 percent from the first quarter of 2006, compared to a 2.4 percent increase in the Consumer Price Index. The three largest cost components were labor (24.5 percent), fuel (23.4 percent) and transport-related expenses (13.9 percent).
Other year-over-year highlights are:
The ATA Airline Cost Index is the only industry analysis of its kind, tracking quarterly and annual trends in the cost of inputs to airline production for U.S. passenger carriers that report quarterly financial information to the U.S. Department of Transportation (DOT). The index facilitates comparisons between the components themselves as well as broader economic indicators.
ATA airline members and their affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic.
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