Airlines - US - November 2007

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Resources used for consumer sections
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Airline industry still continuing its recovery after 9/11
• Revenue driven by strength of economy; profitability dependent on managing costs and upgrading the ATC system
• U.S. carriers return to profitability; customer service problems rise dramatically
• Southwest outspends all other airlines on media
• Consumers fly, but do not always enjoy it
• Market Drivers and Future Trends
• Fuel cost increases limit profitability
  • Figure 1: Airline fuel costs per gallon, at current and constant prices, 2002-07
• Future trend
• Air traffic control system needs overhaul--flight delays and crowded planes tarnish air travel' s image
  • Figure 2: Airline on-time performance, 2002-07 (YTD January-August)
  • Figure 3: Reasons for air traffic delays in percent of total delayed minutes, 2003-07
• Planes are full
  • Figure 4: Total U.S. passengers emplaned, 2002-07
• Future trend
• GDP growth influences airline revenue
  • Figure 5: Total U.S. Real GDP and scheduled airline passenger revenue relationship, 1975-2000
  • Figure 6: Total U.S. GDP and scheduled airline passenger revenue relationship, 2002-07*
• Distribution of income
  • Figure 7: Per capita disposable personal income, at current and chained 2000 dollars, 2000-06
  • Figure 8: Distribution of U.S. households, by income, 1999 and 2004
• A la carte travel on the rise
• Market Size and Forecast
• Market size
  • Figure 9: Total operating revenue of U.S. passenger, cargo, charter and other airline, at current and constant prices, 2002-07
  • Figure 10: Total operating profit/loss of U.S. passenger, cargo, charter and other airline, at current and constant prices, 2002-07
• Passenger airlines
  • Figure 11: Total operating revenue of U.S. passenger airlines, at current and constant prices, 2002-07
  • Figure 12: Total U.S. passengers emplaned, 2002-07
• Forecast of U.S. passenger, cargo, charter, and other airline operating revenue
  • Figure 13: Forecast of total operating revenue of U.S. passenger, cargo, charter, and other airlines, at current and constant prices, 2007-12
• U.S. passenger airline operating revenue
  • Figure 14: Forecast of operating revenue of U.S. passenger airlines, at current and constant prices, 2007-12
• Forecast factors
• Supply Structure
• Key points
• Operating revenue increased by 19.3% during 2004-06
• All major airlines returned to profitability in first half of 2007
• Leading airlines carried 3.6% more passengers in 2006
• Performance benchmarks
• Companies and brands
  • Figure 15: Passenger operating revenue of U.S. airlines, 2004 and 2006
  • Figure 16: Operating profit/loss by U.S. carrier, 2004 and 2006 and first-half 2007
  • Figure 17: U.S. airlines ranked by number of passengers, 2004 and 2006
• Comparative analysis of major airlines by key performance indicators
• On-time performance by carrier
  • Figure 18: U.S. leading airlines, ranked by on-time performance, 12-months ending August 2007
• Mishandled baggage complaints by carrier
• Figure 19: U.S. leading airlines, ranked by mishandled baggage reports filed by passengers, January-June 2006 & 2007
• Consumer complaints by carrier
  • Figure 20: U.S. leading airlines, ranked by consumer complaints, January-June 2006 & 2007
• Advertising and Promotion
• Key points
• Introduction
  • Figure 21: Television spot, "Saving On Room Service," March 2007
  • Figure 22: Television spot, "Sincerely, Billy Doyle," June 2007
  • Figure 23: Television spot, "First Glimpse Of Hawaii," March 2007
  • Figure 24: Television spot, "Little Bob," May 2007
  • Figure 25: Television spot, "Business Travellers/Advantage Awards," March 2007
• Companies and brands
  • Figure 26: Media expenditures for leading airlines, 2005-06
• Advertising profiles
• American Airlines
  • Figure 27: Television spot, "Business Travellers/Advantage Awards," March 2007
  • Figure 28: Television spot, "We know why you fly/little girl talks to dad," March 2007
• AirTran Airways
  • Figure 29: Television spot, "Employee thinks boss is on conference call," September 2007
• Continental Airlines
  • Figure 30: Television spot, "Flight attendants say goodbye," March 2007
• Delta Airlines
  • Figure 31: Television spot, "Deserted airport," May 2007
  • Figure 32: Television spot, "More flights and entertainment," May 2007
  • Figure 33: Television spot, "Gold Delta SkyMiles credit card," June 2007
• JetBlue
  • Figure 34: Television spot, "Sincerely, Mark Adleman," September 2007
• Southwest Airlines
  • Figure 35: Television spot, "Man loses neighbours' pets," September 2007
  • Figure 36: Television spot, "Woman won' t stop elevator," August 2007
  • Figure 37: Television spot, "Airplane spinning wheel," September 2007
• United Airlines
• The Consumer: Travel Profile
• Summary
• Domestic travel is popular
• Most travelers make their own travel arrangements
• Profile of domestic travelers
  • Figure 38: Profile of domestic travelers, May 2006--June 2007
• Profile of air travelers
  • Figure 39: Profile of domestic air travelers, May 2006--June 2007
• Personal or vacation trips by plane
  • Figure 40: Frequency of vacation/personal travel, by gender, May 2006-June 2007
  • Figure 41: Frequency of personal/vacation travel, by age, May 2006--June 2007
  • Figure 42: Frequency of personal/vacation travel, by household income, May 2006--June 2007
• Business travel by plane
  • Figure 43: Frequency of business travel, by gender, May 2006--June 2007
  • Figure 44: Frequency of business travel, by age, May 2006--June 2007
  • Figure 45: Frequency of business travel, by household income, May 2006--June 2007
• Airlines flown in the past year
  • Figure 46: Airlines flown in the past year, by age, October 2007
• Type of traveler
  • Figure 47: Type of traveler, by gender, October 2007
  • Figure 48: Type of traveler, by age, October 2007
• Flight arrangements
  • Figure 49: Who makes flight arrangments, by gender, October 2007
  • Figure 50: Who makes flight arrangements, by age, October 2007
  • Figure 51: Who makes flight arrangements, by race/ethnicity, October 2007
• Business travel arrangements
  • Figure 52: Who makes business flight arrangments, by gender, October 2007
• The Consumer: Foreign Travelers
• Summary
• One in five adults took a foreign trip by plane in the past three years
• Most foreign trips are taken for vacation purposes
• U.S.-based carriers are most popular for foreign travel
• Profile of foreign travelers
  • Figure 53: Profile of foreign travelers, May 2006-June 2007
• Profile of foreign air travelers
  • Figure 54: Profile of foreign air travelers, May 2006-June 2007
• Reason for foreign trips
  • Figure 55: Reason for taking a foreign trip, by gender, May 2006--June 2007
  • Figure 56: Reason for taking a foreign trip, by age, May 2006--June 2007
  • Figure 57: Reason for taking a foreign trip, by race/ethnicity, May 2006--June 2007
• Number of foreign trips
  • Figure 58: Number of foreign trips taken in past 3 years, by gender, May 2006-June 2007
  • Figure 59: Number of foreign trips taken in past 3 years, by age, May 2006--June 2007
• Airline preferences for foreign travel
  • Figure 60: Airline preferences for foreign travel, by household income, May 2006--June 2007
  • Figure 61: Airline preferences for foreign travel, by race/ethnicity, May 2006--June 2007
• The Consumer: Air Travel Experiences and Attitudes
• Summary
• Consumers have mixed feelings about air travel
• Most air travelers are price-sensitive
• Experiences with air travel
  • Figure 62: Experiences with air travel, by gender, October 2007
  • Figure 63: Experiences with air travel, by household income, October 2007
• Attitudes toward air travel
  • Figure 64: Attitudes toward air travel, by gender, October 2007
  • Figure 65: Attitudes toward air travel, by age, October 2007
  • Figure 66: Attitudes toward air travel, by household income, October 2007
• Fear of flying
  • Figure 67: Fear of flying, demographic profile, October 2007
• Willingness to alter air travel plans
  • Figure 68: Rescheduling reservations, by age, October 2007
  • Figure 69: Rescheduling reservations, by household income, October 2007
• Appendix: Trade Associations
• Appendix: Simmons Cohorts
  • Figure 70: Married couples cohorts
  • Figure 71: Single women cohorts
  • Figure 72: Single men cohorts