Deutsche Bank issued an Airlines Alert Monday and noted that October PRASM increased 1.9 percent year-over-year.
Analysts led by Michael Linenberg cited that “Airlines for America (“A4A”) reported that the industry’s consolidated passenger unit revenue ("PRASM") in October 2014” came “in ahead of our forecast of +0.0-1.0 percent.”
“Domestic (plus Express) PRASM in October increased 3.0 percent; this followed August and September’s gains of 4.7 percent and 3.5 percent, respectively. The October result was driven by an improvement in yields (+1.0 percent) as well as an increase in load factor (+1.6 points to 84.1 percent),” according to the report.
The report concluded that “International PRASM in October decreased 1.0 percent year-over-year, which was better than both August’s 2.1 percent decrease and September’s 1.5 percent decline. The October PRASM decline was a result of a 1.7 point decrease in the industry’s average load factor to 79.8 percent, which more than offset a 1.1 percent increase in yields.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.