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http://biz.yahoo.com/ap/070913/midwe...ffic.html?.v=1

AP
Midwest Aug. Traffic Rises 28.2 Percent
Thursday September 13, 9:09 am ET
Midwest Air Group Traffic, Capacity and Occupancy Rise, Revenue Does Not Keep Up Pace


MILWAUKEE (AP) -- Midwest Air Group Inc. said Thursday its traffic, capacity and occupancy rose in August as summer demand for air travel remained strong, though revenue did not keep pace with the increases.
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Midwest's traffic rose by 28.2 percent to 463.9 million revenue passenger miles from 361.7 million a year earlier. A revenue passenger mile is an industry unit measuring one paying passenger flown one mile.

Its capacity rose by 22.8 percent to 565.6 million available seat miles from 460.5 million in August 2006. An available seat mile factors in the number of seats available and the number of miles flown.

Occupancy rose to 82 percent of seats filled from 78.6 percent.

However, Midwest said its estimated revenue per available seat mile fell 1.6 percent, to 12.49 cents from 12.69 cents. That metric represents revenue for each seat flown one mile.

August results for its Midwest Airlines and Midwest Connect subsidiaries mirrored overall results, with traffic, capacity and occupancy increases but drops in revenue per available seat mile. Traffic and capacity at Midwest Connect, its smaller operation, more than doubled, but revenue per available seat mile dropped 30.8 percent.

For the year through August, Midwest's traffic rose 16.7 percent to 3.25 billion revenue passenger miles from 2.79 billion during the same period in 2006. Its capacity rose 13.4 percent, to 4.07 billion available seat miles from 3.59 billion. Its occupancy rose to 80 percent of seats filled from 77.7 percent.

Good news for Midwest but revenue is still down. I wonder how Midwest is going to address the revenue problem?