Fitch: Solid Growth to Continue for U.S. Transportation

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: U.S. Transportation Trends (Spring 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879715

Growth will remain healthy for all three U.S. major transportation sectors (airports, ports and toll roads) this year, according to Fitch Ratings in a new report.

Fitch expects passenger traffic growth to increase over 3% in 2016, with the bulk of air passenger growth coming from international hub airports. All major U.S. carriers have seen positive traffic growth through the first part of 2016, though a wide range of performance remained. JetBlue (15.2%) and Southwest Airlines (12.2%) led the way with strong increases in revenue passenger miles while increases among United Airlines (1.3%) and American Airlines (3.1%) were more marginal.

Ports nationwide will continue to benefit from a stronger dollar driving imports, with twenty-foot equivalent units (TEUs) growing modestly last year in line with overall GDP. A primary focus for ports remains 'big ship readiness'. Shippers, logistics providers and ports will be keeping close watch over the expanded Panama Canal, which opened for commercial traffic this year. While large-scale shifts in cargo are not expected, some adjustments are possible.

As for toll roads, low fuel prices have boosted growth in traffic (6.6%) and revenue (8.3%) since the second half of 2015. The Southeast and Southwest U.S. have and will continue to lead in traffic performance. The higher rate of growth in revenues is reflective of typical inflationary toll rate increases, which Fitch expects to average roughly 2% over time.

A degree of uncertainty always remains for the long-term direction of the broader economy, especially after a rather volatile first three months of the year.

The Transportation Trends report now includes an expanded data set in its appendices, including 2015 volume and revenues, five-year compounded annual growth rates, and recessionary peak-to-trough data. 'U.S. Transportation Trends' is available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at www.fitchratings.com.

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View source version on businesswire.com: http://www.businesswire.com/news/home/20160419006167/en/

Fitch Ratings, Inc.
Seth Lehman (Airports)
Senior Director
+1-212-908-0755
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY, 10004
or
Emma Griffith (Ports)
Director
+1-212-908-9124
or
Saavan Gatfield (Toll roads)
Senior Director
+1-212-908-0542
or
Media Relations
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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