BTS Indicators Report Shows Decline In Air Carrier Return on Assets

Contact BTS 7-01 David Smallen 202-366-5568

Monday, April 30, 2001 -- The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) today released its monthly Transportation Indicators report showing a real return on assets of less than 2 percent for the nation’s large air carriers in 2000—the lowest calendar-year return since 1994.

The eighth Transportation Indicators reports that the major air carriers’ passenger, freight, and other sources of operating revenue all grew more slowly than operating expenses during the third quarter of 2000 than the same quarter of the previous year.

The BTS report is amonthly update of critical transportation information that details the impact of transportation on the nation’s economy and society.

Dr. Ashish Sen, BTS Director, said, "As part of our role to collect transportation information and make it available to the public, the Bureau of Transportation Statistics issues the Transportation Indicators report every month as an easy-to-use source of information. The trends updated by BTS on a regular basis can produce more informed transportation decisions in the public and private sectors."

Transportation Indicators provides information on more than 90 trends in the areas of safety, mobility, economic growth, the human and natural environment, and national security. The monthly report, which is available at www.bts.gov, provides information to address specific transportation issues and to assist in the effort led by BTS to make transportation information more accurate, reliable, and timely. Updated reports will be available on the BTS website the fourth week of every month.

Other trends highlighted in this month’s report are:

• Airline revenue passenger miles increased 4 percent from December 1999 to December 2000, while domestic air freight ton miles declined more than 8 percent. Overall, the revenue load factor for passenger and freight increased 1.5 percent.
• 26.5 percent of flights did not arrive on time in February 2001—an increase of more than 1 percentage point from February 2000.
• Rail car loadings declined over 3 percent from the fourth quarter 1999 to the fourth quarter 2000.
• U.S. inland waterway commercial tonnage was down 10 percent from March 2000 to March 2001. Petroleum, chemical, farm and food product tonnage declined, while coal and coal product tonnage rose 3 percent over the same period.
• Consumer prices for transportation continued to lag behind the Consumer Price Index for all items and registered a small decline in March 2001.
• Producer prices for crude petroleum declined nearly 15 percent from March 2000 to March 2001.
• Prices of for-hire transportation services increased in March, with air and water transportation up nearly 8 percent, and rail nearly 7 percent, over the March 2000 producer prices.
• Transportation industry profits fell 17 percent from the third to fourth quarters of 2000, despite slightly higher income.
• Business investment in transportation equipment dropped 13 percent in real terms from the fourth quarter of 1999 to the fourth quarter of 2000.
• Medium/heavy truck sales were down 32 percent from March 2000 to March 2001.
• Imports dropped more than 5 percent from January to February 2001, while exports rose.
• Transportation energy consumption declined more than 1 percent from December 1999 to December 2000.
• Transportation energy use per dollar of GDP declined 3 percent in the fourth quarter of 2000 from the same quarter in 1999.

Continual updating of information on trends will help in developing forecasts for the future, both within the department and outside. The monthly report will also help transportation decision-makers spot changes that might require rapid action.