To News/PR Index
for America Projects U.S. Airlines to
16.1 Million Passengers over Labor Day Travel Period
significant improvements in baggage handling,
denied boardings during first half of 2017
DC – August 2017 / Newsmaker Alert / Airlines
for America (A4A), the industry trade organization for the leading
U.S. airlines, project 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 to have flown during this
period last year. Accordingly, airlines are adding 133,000 seats per day
across their networks to accommodate the expected increase in demand.
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.
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. “While we expect a growth in passenger
traffic over the Labor Day holiday, flyers can rest assured that U.S. airlines
have appropriately increased the number of seats available for their late
airlines reported the following operational results for the first half
of 2017, according to the Department of Transportation:
regularly invest in their workforce and new technologies, and put in place
processes to improve operations and enhance the customer experience. The
industry’s nearly 99% flight completion rate and record-low rates of involuntarily
denied boardings and mishandled baggage reflect these investments,” continued
completed 98.55 percent of domestic flights, down slightly from 98.75 percent
in the same period of 2016;
posted an on-time arrival rate of 78.66 percent, down from 81.42 percent;
bag rate improved from 2.65 per 1,000 passengers to 2.54 – the lowest level
of involuntarily denied boardings fell from 0.62 per 10,000 passengers
to 0.52 – also the lowest level ever recorded.
domestic seat supply is at its highest level since 2005 and international
supply is at an all-time high.
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%).
revenues rose largely on 2.8 percent more passenger traffic, accompanied
by a 1.2 percent increase in passenger yield (airfare per mile).
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.
Capital Expenditures Growing
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.
commercial aviation helps drive nearly $1.5 trillion in U.S. economic activity
and more than 10 million U.S. jobs. Airlines for America (A4A) vigorously
advocates on behalf of the American airline industry as a model of safety,
customer service and environmental responsibility and as the indispensable
network that drives our nation’s economy and global competitiveness.
needs a cohesive National Airline Policy that will support the integral
role the nation’s airlines play in connecting people and goods globally,
spur the nation’s economic growth and create more high-paying jobs. A4A
works collaboratively with the airlines, labor groups, Congress and the
Administration to improve air travel for everyone.
more information about the airline industry, visit our website Airlines.org
and our blog, A Better Flight Plan, at Airlines.org/blog.
us on Twitter: @AirlinesDotOrg
us on Facebook: Facebook.com/AirlinesforAmerica
us on Instagram: Instagram.com/AirlinesforAmerica.
for America (A4A)
Director, Airline Industry Public Relations and Communications
Director, Government and Regulatory Communications
Vice President, Communications