During the month of September 2014:
- Southwest Airlines Co. cancelled 707 U.S. flights, the most of any major carrier;
- United Continental Holdings Inc. cancelled 518 flights;
- American Airlines Group Inc. cancelled 423 flights; and,
- Delta Air Lines Inc. cancelled 38.
That’s a total of 1,686 cancellations, representing ~ 19% of the 9k U.S. flights cancelled during September 2014.
The “take away”?
- At an average of 200 passengers/flight, that’s 370,920 upset and/or angry passengers who have to be rebooked.
- To increase the odds of avoiding cancelled flights and the attendant frustration, avoid low-cost carriers and book with Delta.
Dealing with all of those passengers is challenging enough. But, it’s peanuts compared to what cancelled flights cost the airlines: An average loss of $5,770/cancelled flight segment.
With 9k cancelled flight segments during the month of September 2014 alone, that cost the airlines nearly $52M! And that’s during a season of the year when the weather isn’t particularly nasty.
Having no Federal Reserve Bank to print money, the airlines have to recoup those loses. Guess how? By increasing fares.
So, it’s back to the low-cost carriers and praying the flight won’t get cancelled.
Let the discussion begin…
To read the Wall Street 24/7 article, click on the following link: