Skip to main content

Fitch: Solid growth to continue for US transportation

US financial research organisation Fitch Ratings has released its spring US Transportation Trends report which indicates that growth will remain healthy for all three US major transportation sectors (airports, ports and toll roads) this year. Commenting on toll roads, Fitch notes that low fuel prices have boosted growth in traffic (6.6 per cent) and revenue (8.3 per cent) since the second half of 2015. The south-east and south-west US have and will continue to lead in traffic performance. The higher rate
April 21, 2016 Read time: 2 mins
US financial research organisation Fitch Ratings has released its spring US Transportation Trends report which indicates that growth will remain healthy for all three US major transportation sectors (airports, ports and toll roads) this year.

Commenting on toll roads, Fitch notes that low fuel prices have boosted growth in traffic (6.6 per cent) and revenue (8.3 per cent) since the second half of 2015. The south-east and south-west US 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 two per cent over time.

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

According to Fitch, 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.

Related Content

  • April 14, 2015
    Solid growth for IRD
    International Road Dynamics showed solid growth for the three months ended 28 February, with revenue up 3.6 per cent in key geographic markets and product segments. The company’s gross margin continues to strengthen, up 11.6 per cent from last year's first quarter, rising to 30.6 per cent of revenues from 28.4 per cent last year. It reports a stable financial position with working capital rising to US$7.7 million and forecasts continued growth through the balance of fiscal 2015. "Following solid growth
  • November 12, 2013
    Fitch Ratings analysis indicates problems for toll express lanes
    A special report, US Managed Lanes, by Fitch Ratings sees toll express or managed lanes (MLs) as especially difficult to assess for financial viability, saying that they vary enormously one to another and are likely to demonstrate very different performance and be subject to greater volatility than regular toll roads. But they say there is now sufficient experience with managed lanes (MLs) for some lessons to be learned. ML time savings compared to the regular lanes has been seen as the fundamental drive
  • August 11, 2017
    ISS announces 2017 first half financial results
    Image Sensing Systems (ISS) has announced results for its second quarter and first half ended 30 June 30 2017. ISS’s revenue for the first half of 2017 was US$6.6 million, a 17 per cent decrease from revenue of US$7.9 million in the first half of 2016. Sales gross margin for the first six-months of 2017 was 78 per cent, a two per cent increase from the prior year period. The increase in gross margin was the result of a higher percentage of revenue from royalties, improved product sales gross margin and a
  • February 28, 2014
    Solid growth and improved profitability for IRD in 2013
    International Road Dynamics (IRD) has announced solid growth for the three months and year ended 30 November 2013, with revenue up 14.7 per cent in the fourth quarter and 5.0 per cent for the year. The company says increasing service revenue contributed to improved profitability and stability of cash flows, while its China XPCT investment contributed strong earnings in the fourth quarter and the year. Revenue in the fourth quarter of fiscal 2013 rose 14.7 per cent to US$12.6 million compared to US$11.0 m