Deutsche Bank Comments On October Airline PRASM

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.”