United Continental Holdings Inc (UAL), Delta Air Lines, Inc. (DAL): Signs Pointing Skyward for Major Airlines

First of all, growth in revenue passenger miles (air passengers flying one mile) significantly outpaced that of available seat miles (seating capacity). Specifically, traffic climbed 6.3% on a 5.6% capacity boost.

As a result, load factors (occupancy rates) remained higher versus last year. Importantly, passenger revenue per available seat mile (pricing) rose 5% year over year, though this may partly reflect the offsetting of fuel cost hikes.

The gist is that this carrier, whether or not it merges with American Airlines, a subject that will soon be discussed in court, is a strong, growing entity. US Airways Group Inc (NYSE:LCC) should fare well as a third U.S.-based international carrier as it gains steam in the transatlantic and Latin American markets.

Foolish take
Recent activity among the major international carriers should have positive ramifications down the road. They are likely to be expanding their networks and experiencing improved fuel efficiency from new aircraft. A decade of better airline earnings is under way, and apt to persist as long as the environment is favorable.

The article Signs Pointing Skyward for Major Airlines originally appeared on Fool.com and is written by Damon Churchwell.

Damon Churchwell owns shares of US Airways Group (NYSE:LCC). The Motley Fool has no position in any of the stocks mentioned. 

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