Airlines for America (A4A), an industry trade organization for several major U.S. airlines, projected 16.1 million passengers will fly worldwide in scheduled service on U.S. airlines over the Labor Day travel period, up 5 percent (110,000 passengers per day) from the 15.4 million passengers estimated in 2016. Labor Day falls on Sept. 4.
The trade organization reported that airlines are adding 133,000 seats per day across their networks to accommodate the expected increase in demand for airplane travel. Over the seven-day air travel period, beginning Wednesday, Aug. 30 and ending Tuesday, Sept. 5, ATL, LAX and ORD, respectively, are expected to be the three busiest U.S. airports based on departing seats in scheduled service.
Friday, Sept. 1 is expected to be the busiest day, followed by Thursday, Aug. 31 and Monday, Sept. 4.
“As household wealth increases, ticket prices remain low and airlines large and small continue to grow, consumers are finding it easier and more affordable than ever to get away for personal or family travel,” said A4A Vice President and Chief Economist John Heimlich. “...Flyers can rest assured that U.S. airlines have appropriately increased the number of seats available for their late summer getaways.”
Airlines for America also released some other airline stats as part of its press release, listed below.
Airline Operational Performance
U.S. airlines reported the following operational results for the first half of 2017, according to the Department of Transportation:
- U.S. airlines completed 98.55 percent of domestic flights, down slightly from 98.75 percent in the same period of 2016.
- Airlines posted an on-time arrival rate of 78.66 percent, down from 81.42 percent.
- Mishandled bag rate improved from 2.65 per 1,000 passengers to 2.54 – the lowest level ever recorded.
- The rate of involuntarily denied boardings fell from 0.62 per 10,000 passengers to 0.52 – also the lowest level ever recorded.
“Airlines regularly invest in their workforce and new technologies, and put in place processes to improve operations and enhance the customer experience,” Heimlich said. “The industry’s nearly 99% flight completion rate and [a] record-low rate of involuntarily denied boardings reflect these investments.”
Airline Financial Results
Nine U.S. passenger airlines (Alaska, Allegiant, American, Delta, Hawaiian, JetBlue, Southwest, Spirit and United) collectively reported a pre-tax profit margin of 11.4 percent ($9.2 billion) for the first half of 2017, down from 15.5 percent ($12 billion) during in the first half of 2016. The decline in profitability was attributable to expenses surging 9.1 percent, outpacing 4.2 percent growth in revenues.
- Higher operating expenses were driven by increases in fuel (+19.9%), labor (+9.1%), maintenance (+8.3%), aircraft (+6.8%) and airport rents and landing fees (+3.1%).
- Operating revenues rose largely on 2.8 percent more passenger traffic, accompanied by a 1.2 percent increase in passenger yield (airfare per mile).
- Overall, U.S. inflation rose 2.2 percent in the first half of 2017, implying a 1 percent year-over-year decline in inflation-adjusted (“real”) airfare.
Airline Capital Expenditures Growing
Airlines are reinvesting in the customer experience at a rate currently outpacing 2016. The nine U.S. passenger airlines cited above collectively reinvested $1.6 billion per month during the first half of 2017 in their product and the customer experience. These investments include enhanced baggage and airport security systems, expanded route networks and seat capacity, improvements to in-flight Wi-Fi and in-flight entertainment, new aircraft and airport amenities such as upgraded terminals and lounge space.
