Air Powers' Big Business

May was a good month for airlines, as revenue per available seat mile rose by 12.6%, reflecting strong business travel growth and reduced capacity.

Legacy carriers have been particular beneficiaries, as their pricing has come closer to meeting their low-cost competitors.

"The surging RASM gains are not solely a function of capacity discipline, but underlying demand capacity as well," said JPMorgan analyst Jamie Baker, in a report on the data, which was compiled by the Air Transport Association.

Meanwhile, the number of corporate travelers on all domestic airlines grew 12.5% between February and April 6, while spending on corporate travel jumped 27% during the period, according to a survey of corporate customers compiled by AMR (AMR Quote) unit American Airlines. ...