2 During the steady growth from 2013 to 2014 US airline revenue as a percent of

2 during the steady growth from 2013 to 2014 us

This preview shows page 59 - 74 out of 104 pages.

while airline revenue rose only 2.2%. During the steady growth from 2013 to 2014, US airline revenue as a percent of GDP ranged from 1.16% to 1.17%. That percentage dropped to 1.14% in second quarter 2015.
Image of page 59
US Airline Industry System Baggage, Reservation Change and Miscellaneous Fees Side-to-Side
Image of page 60
US Airline Industry System Baggage, Reservation Change and Miscellaneous Fees Side-to-Side During the second quarter of 2015, ancillary revenue accounted for 8.0% of total revenue. Ten years ago, ancillary revenue accounted for less than 3.0% of revenue. These fees contributed $106 million in revenue during the second quarter, with most of it from value carriers’ domestic operations. Network carrier ancillary revenue grew less than 1% year- over-year after making significant gains over the past 10 year. Delta collected $22.48 per segment passenger, the highest among network airlines.
Image of page 61
US Airline Industry System CASM by Group (Excluding Regional Affiliates) Side-to-Side
Image of page 62
US Airline Industry System CASM by Group (Excluding Regional Affiliates) Side-to-Side US airline system wide unit cost declined 12.6% year-over-year to 11.5¢ during second quarter 2015. Network carrier system cost slid 12.6%, falling from 13.5¢ to 11.8¢. (Alaska, American, Delta, Hawaiian, United, US Airways).
Image of page 63
US Carrier System Labor Unit Costs Side-to-Side
Image of page 64
US Carrier System Labor Unit Costs Side-to-Side The labor unit cost is increasing at a greater rate for the value carrier group. The two largest value airlines, Southwest and JetBlue, reported labor unit cost increases exceeding 7% year- over-year. Delta’s labor cost per ASM was down 14.1% from 2014, when the carrier had the highest labor cost in the US industry.
Image of page 65
US Carrier System Average Stage‑length vs. CASM Side-to-Side
Image of page 66
US Carrier System Average Stage‑length vs. CASM Side-to-Side The three largest network airlines all reported the highest domestic unit costs. (Delta, American, United). Delta had the highest unit cost for the group (and the highest unit revenue), its unit cost decreased 15.0% to 13.3¢. Despite having the smallest fuel cost decline at only 14.9%, Delta’s overall unit cost reduction of 15.0% was the highest among network airlines.
Image of page 67
US Domestic CASM Breakdown by Airline – Network Carriers Side-to-Side
Image of page 68
US Domestic CASM Details for Individual Carriers Side-to-Side
Image of page 69
World Capacity Change Side-to-Side
Image of page 70
World Capacity Change Side-to-Side Industry Capacity, measured in available seat miles (ASMs), increased 6.3% worldwide, and every major world region experienced ASM growth at or above 4.6%. Available seats grew 5.5% and departures increased only 3.1%. Ten years ago, the average scheduled flight had 114 seats and flew only 685 miles. If similar growth rates continue over the next 10 years, the average aircraft will depart with 167 seats and fly 964 miles. Which is a massive change.
Image of page 71
US Carrier Share of Passenger Revenue Side-to-Side
Image of page 72
US Carrier Share of Passenger Revenue Side-to-Side Value carriers continue to expand internationally, with a primary focus on Latin American markets. There is a wide variation of revenue exposure among the value carriers, from JetBlue to Southwest, in how much they serve international destinations.
Image of page 73
Image of page 74

You've reached the end of your free preview.

Want to read all 104 pages?

  • Spring '10
  • Varies
  • Delta Air Lines, Pan American World Airways, Delta Airlines

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture