Index Moves Down 9 points

Posted on Thursday 10 May 2007

The index currently stands at 430. On the same day in 2006 the index was at 474 and 484 in 2005.

The chart here shows clearly the gap between the trend lines for 2005 and 2006 versus what we are seeing so far in 2007.

Our analysis has shown a correlation between the index value and airline domestic RASM. The index provides a 30 to 45 day advance view of reported RASM. If this holds true in the current situation, we can expect carriers to report revenue concerns for the last two weeks in April and the first two weeks of May.


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