Memorandum

U.S. Department of

Transportation

Office of the Secretary

of Transportation

Office of Inspector General

Subject: INFORMATION: Airline Industry Metrics Date: July 2, 2003 

From: Kenneth M. Mead 

Inspector General 

Reply to

Attn of: JA-50 x69970 

To: The Secretary

Deputy Secretary

Chief of Staff 

Associate Deputy Secretary

Assistant Secretary for Aviation 

 and International Affairs 

Assistant Secretary for Transportation Policy

Federal Aviation Administrator 

Deputy Director, Bureau of Transportation 

 Statistics

Attached is the fourth in a series of periodic updates to our airline industry

metrics. As a result of the September 11, 2001 terrorist attacks, the war in Iraq,

and the weakness in business travel that has persisted since early 2001, the airline

industry is facing its greatest challenge since deregulation. The attached metrics

were developed as a means for monitoring airline industry trends relating to 

domestic system demand and capacity, performance, finances, and air service at

small airports. Overall, the metrics illustrate a number of important trends, 

including: 





The continuing weakness in passenger demand (down 11 percent in May 2003

from May 2000) coupled with the lack of full-fare business travelers (business

travel dropped 26 percent in December 2002 from December 2000) and the 

drop in fare prices, continue to hamper the industry’s ability to increase yields, 

and in turn, return to profitability. 

Due to the lessening distinction between full-fare and discount ticket prices,

the Air Transport Association ceased collecting and reporting data on business

fares as of January 2003. We are in the process of determining whether an

alternative source for these data is available.

CC-2003-048 
2 

CC-2003-048 









The larger network airlines, facing growing losses, have cut service and/or 

shifted capacity to their regional affiliates—leading to low-fare and other 

smaller airlines expanding their domestic market shares. 

Although service cuts have helped increase passenger load factors, the “break 

even” load factor (the average percentage of paying passengers needed on all 

flights to cover airline costs) has risen even faster, due in large part to 

declining fares and higher fuel costs. 

While the number of flight operations is approaching pre-September 11 levels, 

the average size of aircraft being flown has dropped due to the rapid 

introduction of regional jets and the retirement of larger aircraft. 

Finally, the smallest airports (non-hub) continue to experience a 

disproportionate reduction in air service. 

If you have any questions or if I can be of further assistance, please feel free to 

contact me at (202) 366-1959, or Mark R. Dayton, Assistant Inspector General 

for Competition and Economic Analysis, at (202) 366-9970. 

Attachment 

# 
AIRLINE INDUSTRY METRICS 

Trends on Demand and Capacity, 

Aviation System Performance, 

Airline Finances, and Service to Small Airports 

Number: CC-2003-048 

Date Issued: July 2, 2003 
SUMMARY OF AIRLINE INDUSTRY METRICS

This is the fourth in a series of periodic updates to our airline industry metrics. As a 

result of the September 11 terrorist attacks, the war in Iraq, and the weakness in business

travel demand that has persisted since early 2001, the airline industry is facing its greatest 

challenge since deregulation. 

Based on data obtained from the U.S. Department of Transportation (DOT), Federal

Aviation Administration (FAA), and Air Transport Association (ATA), the Office of 

Inspector General has developed 38 metrics (see Figures 1 through 38, pages 6 through 

12) for monitoring airline industry trends relating to domestic system demand and

capacity, performance, finances, and air service at small airports.

1

 Although subject to

change, these metrics provide decisionmakers with past, present, and future indicators of 

domestic service levels and general state of the airline industry. 

I. Air Service Demand and Capacity

 AIR TRAFFIC DEMAND: Although the number of air travelers had been increasing from 

the sharp decline following September 11, 2001, the number began falling again during

the latter part of 2002. While the December 2002 number showed some improvement 

(down only 4 percent from 2 years earlier), this was due in large part to the timing of

holiday travel. With the approach of the war in Iraq, however, passenger enplanements

again began dropping, with February through May 2003 numbers down between

16 percent and 18 percent from the same period in 2000. [Figure 1]

 CAPACITY VERSUS DEMAND: Actual domestic capacity as measured in available seat

miles (ASMs) increased after September 11, 2001, at a faster rate than passenger

demand as measured by revenue passenger miles (RPMs)—especially during the spring

and early summer of 2002. However, during the latter part of 2002 and first 2 months 

of 2003, the reverse appeared to be the case as airlines brought capacity in line with

travel demand. As of May 2003, passenger demand (RPMs) and actual capacity

(ASMs) were down 11 percent and 12 percent, respectively, from May 2000. 

[Figure 2]

 FLIGHT OPERATIONS: FAA’s Air Route Traffic Control Centers reported handling 

nearly the same number of flight operations in January 2003 as in January 2000.2

 

Nevertheless, the last 4 months have shown a significant decrease with the number of

flight operations down 7 percent in May 2003 versus May 2000. [Figure 3]

 MAJOR AIRLINES ARRIVALS: The decline in capacity has not been uniform among 

major carries as roughly shown by flight arrivals. Southwest and Alaska reported

increases in the number of flight arrivals (i.e., 9 percent and 2 percent, respectively)

 

1 Due to the sizable impact that the terrorist attacks had on domestic flight service during the latter part of

2001, we used 2000 as the base year in many of our metrics.

2 Includes both scheduled and non-scheduled (for example, general aviation and military) air traffic. 

1
between April 2000 and April 2003. The other seven major airlines reported declines 

ranging from 2 percent for America West to 38 percent for US Airways. [Figure 4]

 AIRLINE SCHEDULES—SUMMER 2003: Although the number of flights offered in

airline schedules increased in 2002 after initially dropping in the months following

September 11, 2001, this trend reversed in August 2002. The war in Iraq worsened this 

reversal so that by May 2003 the number of scheduled flights nearly equaled the lows 

reached in November 2001. With the end of the war, flight schedules have begun to

recover, with the airlines currently scheduling 12 and 13 percent fewer flights and

available passenger seats, respectively, in June 2003 versus June 2000. Schedules for 

this summer, however, show little added improvement, with flights and available 

passenger seats remaining down, between 9 and 13 percent, from the same period in

2000. [Figure 5]

 REGIONAL DIFFERENCES: When comparing all airports, the Northeast region

continues to experience the largest decline in air service as compared to other parts of

the country. For example, between June 2000 and June 2003, the Northeast 

experienced an 18 percent drop in scheduled available passenger seats, versus the 

Midwest (-13 percent), West (-13 percent), and South (-11 percent). [Figure 6]

 AIRPORT RECOVERY RATES: The recovery rate among the Nation’s largest airports

continues to vary significantly as measured in scheduled available passenger seats. For

example, only one airport saw an increase between June 2000 and June 2003 (Fort

Lauderdale +11 percent). All other large airports experienced varying levels of decline

during this period—the 10 worst being: San Francisco (-32 percent), Dulles

(-32 percent), St. Louis (-32 percent), Honolulu (-28 percent), Pittsburgh (-28 percent),

Boston (-27 percent), Los Angeles (-26 percent), Newark (-20 percent), Reagan

National (-17 percent), and Miami (-16 percent). [Figure 7]

 LOSS OF SHORT HAUL AIR SERVICE: For scheduled flights of less than 250 miles, 

nearly one in four (or 24 percent) were dropped between June 2000 and June 2003. In

comparison, flights of 500 miles or more experienced far less change in service levels. 

Moreover, during this period, the major network airlines were more likely to cut their

short haul flights, which declined 39 percent, than either the low fare (-6 percent) or 

other smaller (-22 percent) airlines.3

 [Figures 8 and 9]

 LOW-FARE AND OTHER SMALLER AIRLINES GAIN MARKET SHARE: In contrast to the

major network airlines, many low-fare and other smaller airlines have continued to 

expand their market shares (as measured in scheduled available passenger seats), 

increasing approximately 5 and 3 percentage points, respectively, between June 2000

and June 2003. Consequently, the major network airlines have seen their share of

 

3 Network airlines include American, Alaska, America West, Continental, Delta, Northwest, United, and

US Airways. 

Low fare airlines include AirTran Airways, American Trans Air, Delta Song, Frontier Airlines, JetBlue

Airways, National Airlines, Pan American Airways, Southwest Airlines, Spirit Airlines, Sun Country, and

Vanguard Airlines. However, Vanguard Airlines and National Airlines ceased operations in July and

November 2002, respectively.

Other airlines include smaller regional, commuter, and national airlines (many of which are affiliated with

the major network carriers). 

2
domestic air service decline from 65 percent to 56 percent during this same period. 

[Figure 10]

 MARKET SHARE AND GROWTH OF LOW-FARE AIRLINES: Of the total number of 

passenger seats scheduled by the nine low-fare airlines, Southwest represented

approximately 68 percent in June 2003. Southwest also provided nearly 41 percent of

the total growth in low-fare service over the last 5 years, followed by JetBlue 

(17 percent), American Trans Air (13 percent), Airtran (10 percent), Frontier 

(8 percent), Spirit (6 percent), and Delta Song (4 percent). [Figures 11 and 12]

 GROWTH IN REGIONAL JET (RJ) FLIGHTS: Another significant development involves 

the phenomenal growth in RJ flights.4

 Scheduled flights involving RJs increased

142 percent (from 71,764 to 173,732) between June 2000 and June 2003. Flights 

involving other aircraft types experienced far less growth or sharp declines, including

piston (no change), turboprop (-44 percent), and large jets (-18 percent). Overall, the 

portion of scheduled flights involving RJs has grown from 8 percent to 21 percent

between June 2000 and June 2003. [Figures 13 and 15]

 RJ FLIGHTS AT LARGE AIRPORTS: RJs are also assuming a larger share of the total 

number of scheduled flights at the 31 largest airports. Those airports with the highest 

percentages of RJ flights as of June 2003 are: Cincinnati (72 percent), Houston 

(40 percent), Newark (36 percent), Reagan National (32 percent), Dallas-Ft. Worth 

(31 percent), Salt Lake City (31 percent), Boston (30 percent), LaGuardia (30 percent), 

Atlanta (25 percent), and Chicago O’Hare (24 percent). [Figure 14]

II. Air System Performance

 FLIGHT DELAYS AND CANCELLATIONS: For most of the last 3 years, flight delays and

cancellations have remained well below levels reached in 2000. For example, between 

April 2000 and April 2003, gate arrival delays were down 60 percent (from 74,655 to 

29,885), while cancellations dropped more than 76 percent (from 8,853 to 2,096).

Likewise, gate departure delays were down approximately 61 percent (from 63,372 to 

24,496). Poor weather conditions in February 2003, however, resulted in a noticeable

increase in flight delays and cancellations—although these numbers were still below 

those reported in February 2000 and February 2001. [Figures 16, 17, and 18]

 OTHER INDICATORS OF DELAYS: Other indicators of flight delays were also down in

April 2003 from April 2000, including the percentage of flights arriving late (from

23 percent to 12 percent), the percentage of flights departing late (from 20 percent to

10 percent), the average length of gate arrival delays (from 52 minutes to 46 minutes), 

and the average length of gate departure delays (from 54 minutes to 47 minutes).

[Figures 19, 20, 21, and 22]

 

4

 For this analysis, we defined RJs as those jet aircraft seating from 30 to 80 passengers. 

3
III. Airline Finances

 BUSINESS AND LEISURE TRAVEL: The drop in higher-fare business travelers, which

began before September 11, has especially hurt the airlines. Although business 

(first-class and full-fare coach) and leisure traffic improved significantly in the months

immediately following the terrorist attacks, both remained consistently down in 2002. 

Business travel, in particular, was down 26 percent in December 2002 from

December 2000. As of January 2003, ATA ceased collecting and reporting business 

versus leisure fares due to the lessening distinction between full-fare and discount ticket 

prices. [Figure 23]

 AIRLINE TICKET PRICES AND YIELDS: The decline in high-fare business travel, 

coupled with an overall drop in ticket prices, has significantly affected airline yields. 

Between May 2000 and May 2003, for instance, the average ticket price for a 

1,000 mile flight dropped from $147 to $118, resulting in a 20 percent decline in airline 

yields from passenger traffic. [Figures 24 and 25]

 AIRLINE LOAD FACTORS: Because of the airlines’ continuing efforts to constrain

capacity and the gradual return of passengers in response to fare discounting, aircraft

load factors reached 70 percent for the quarter ending December 2002—matching the 

level achieved during the same period in 2000. Yet, the “break even” load factor (the

average percentage of paying passengers needed on all flights to cover airline costs) has 

risen more than 13 percentage points (from 72 to 85 percent) during this same period. 

Among the major airlines, the break even load factor ranged from a low of 58 percent

for Southwest to a high of 106 percent for United. [Figures 26 and 27]

 AIRLINE REVENUES AND EXPENSES: Airline operating revenues were down more than 

expenses in 2002. For the quarter ending December 2002 as compared to the same

period in 2000, operating revenues declined 22 percent, whereas operating expenses

declined 10 percent.

5

 One recent factor hampering the airlines’ efforts to reduce 

expenses was the rapid increase in jet fuel costs, which increased over 20 percent

between April 2002 and April 2003. [Figures 28 and 29]

 AIRLINE DEBT TO INVESTMENT: Due to large operating losses, airline debt to 

investment ratios climbed from 50 percent in 2000 to 66 percent in 2001. For the

quarter ending December 2002, the ratio had increased further to 87 percent, with

individual airline ratios ranging from 28 percent for Southwest to 314 percent for

US Airways.6

 Debt to investment, in part, measures an airline’s ability to finance

operations, given fluctuations in demand and revenue. [Figures 30 and 31]

 AIRPORT AND AIRWAY TRUST FUND: Lower demand and ticket prices have also

reduced tax collections for the Airport and Airway Trust Fund. Prior to

September 11, 2001, FAA projected overall collections of $11.9 billion for Fiscal Year 

 

5 Airline operating revenue was also affected by a sharp drop in domestic mail shipments, which declined

60 percent between 2000 and 2002. 

6 DOT publishes debt to total investment ratios in the Major Airline Quarterly Financial Review. Debt is

defined as long-term debt, capital leases, and advances from associated companies, less unamortized debt

expenses. Total investment includes all the debt items plus stockholder’s equity.

4
5

(FY) 2003. FAA now estimates $9.4 billion in tax collections in FY 2003, a drop of 

more than 21 percent. Current estimates also show that over the next 5 years (FY 2004 

through FY 2008) Trust Fund tax revenues are expected to be about $13 billion less 

than projections made in April 2001. [Figure 32]

III. Air Service at Small Airports 

 CHANGES IN AIR SERVICE: Over the last 5 years, the smallest airports (non-hubs) have 

experienced deeper cuts in air service than their larger counterparts. As of June 2003, 

for instance, non-hub airports saw a 19 percent reduction in scheduled available 

passenger seats from June 1998. This compares to a 3 percent reduction for the larger 

airports. Airline schedules currently project little improvement in air service by 

September 2003, with non-hub airports down 18 percent versus 4 percent for larger 

airports when compared to September 1998. [Figure 33]

 REGIONAL DIFFERENCES: Non-hub airports in the Northeast and Midwest have had 

far larger drops in air service than other parts of the country in the last 3 years. 

Between June 2000 and June 2003, these two regions lost 36 percent and 26 percent, 

respectively, of their scheduled available passenger seats versus an 18 percent decline 

in the South and an 8 percent decline in the West. [Figure 34]

 ACCESS TO LARGE AIRPORTS: Non-hub airports also experienced a greater loss of 

direct service to and from the largest airports than did other airports. Non-hub airports 

lost 23 percent of scheduled flights to the largest airports between June 2000 and 

June 2003. In comparison, small, medium, and large airports experienced reductions of 

only 5 percent to 13 percent. [Figure 35]

 RJ GROWTH: Overall, scheduled flights at non-hub airports involving RJs increased 

155 percent between June 2000 and June 2003. In comparison, flights involving other 

aircraft types experienced either far less growth or sharp declines, including piston (no 

change), large jets (-29 percent), and turboprop (-35 percent). [Figure 36]

 LOW FARE SERVICE: Non-hub airports can anticipate little or no added air service by 

low-fare airlines—even though these airlines are one of the few segments of the 

industry experiencing continued expansion. Overall, low-fare airlines scheduled 

service to only 8 of the more than 400 non-hub airports in June 2003,7

 representing 

approximately 3 percent of the total available passenger seats to these airports. In 

comparison, the major network and other smaller airlines comprised roughly 19 percent 

and 78 percent, respectively, of scheduled service. [Figure 37]

 ESSENTIAL AIR SERVICE (EAS): In the aftermath of September 11, 2001, 

congressional funding and the number of small communities requesting EAS subsidies 

increased significantly. For example, between FYs 2001 and 2003, funding rose 

126 percent (from $50 million to $113 million), while the number of subsidized 

communities increased 9 percent (from 115 to 125). For FY 2004, however, the 

President’s budget request calls for a return to the $50 million level and is proposing 

significant changes in how subsidies are allocated. [Figure 38] 

 

7

 These data include only those non-hub airports that receive at least one scheduled flight per week. 
Airline Industry Metrics

Figure 6: Regional Differences at All Airports

Percent Change in Available Seats at All Airports 6/03 vs. 6/00

(FAA Data)

National Average -13%

West

-13%

Midwest

-13%

Northeast

-18%

South

-11%

9%

2%

-2% -6%

-19% -20%

-27% -29%

-38%

-60%

-45%

-30%

-15%

0%

15%

Southwest

Alaska

America

West

Northwest

Continental

American

Delta

United

US Airways

Percentage

Figure 4: Major Airlines Actual Arrivals

Percent Change in Actual Arrivals by Airline 4/03 vs. 4/00

(FAA Data)

-16%

-12%

-8%

-4%

0%

4%

Jan-01

Mar-01

May-01

Jul-01

Sep-01

Nov-01

Jan-02

Mar-02

May-02

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Jul-03

Sep-03

Percentage

Scheduled Flights Available Seats

Figure 5: Scheduled Capacity

Percent Change in Scheduled Flights and Available Seats at 

All Airports from 2000 (FAA Data)

-40%

-30%

-20%

-10%

0%

10%

Jan-01

Mar-01

May-01

Jul-01

Sep-01

Nov-01

Jan-02

Mar-02

May-02

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Percentage

Figure 1: Passenger Enplanements

Percent Change in Revenue Passenger Enplanements from 2000 

(ATA Data)

May '03

-17%

Sep '01

-34%

-40%

-30%

-20%

-10%

0%

10%

Jan-01 

Mar-01 

May-01 

Jul-01 

Sep-01 

Nov-01 

Jan-02 

Mar-02 

May-02 

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Percentage

Available Seat Miles Revenue Passenger Miles

Figure 2: Capacity vs. Demand

Percent Change in Available Seat Miles vs. Revenue Passenger

Miles from 2000 (ATA Data)

May '03 RPM

-11%

May '03 ASM

-12%

-20%

-15%

-10%

-5%

0%

5%

Jan-01

Mar-01

May-01

Jul-01

Sep-01

Nov-01

Jan-02

Mar-02

May-02

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Percentage

Figure 3: Actual Flight Operations

Percent Change in Air Route Traffic Control Center Operations from 

2000 (FAA Data)

Sep '01

-16%

May '03

-7%

 6
Airline Industry Metrics

56%

60%

65% 64%

19% 21%

15% 17%

23%

20% 20% 21%

0%

15%

30%

45%

60%

75%

6/2000 6/2001 6/2002 6/2003

Percentage

Network Low Fare All Others

Figure 10: Airline Market Share

Airline Market Share by Available Seats (FAA Data)*

* All percentages

are rounded.

-24%

-12%

5%

-2%

-40%

-30%

-20%

-10%

0%

10%

0 to 249 250 to 499 500 to 999 1,000+

Miles

Percentage

Figure 8: Length of Flight

Percent Change in Scheduled Flights by Length of Flight

6/03 vs. 6/00 (FAA Data)

-39%

-6%

-22%

-50%

-40%

-30%

-20%

-10%

0%

Network Low Fare All Others

Type of Air Carrier

Percentage

Figure 9: Short Haul Flights by Type of Airline

Percent Change in Scheduled Flights Less Than 250 Miles by Type of 

Airline 6/03 vs. 6/00 (FAA Data)

-50% -40% -30% -20% -10% 0% 10% 20%

Fort Lauderdale

Baltimore

Kennedy

Las Vegas

Salt Lake City

Houston

Charlotte

Tampa

Minneapolis

San Diego

Atlanta

Detroit

Cincinnati

Seattle

LaGuardia

Phoenix

Orlando

Denver

Chicago O'Hare

Philadelphia

Dallas-Ft. Worth

Miami

Reagan National

Newark

Los Angeles

Boston

Pittsburgh

Honolulu

St. Louis

Dulles

San Francisco

Scheduled Flights Available Seats

Figure 7: Large Airports

Percent Change in Scheduled Flights and Available Seats at the 

31 Largest Airports 6/03 vs. 6/00 (FAA Data)

 7
Airline Industry Metrics

Other, 1%

Southwest, 

68%

Airtran, 9%

American Trans 

Air, 8%

JetBlue, 6%

Frontier, 4%

Spirit, 3% Delta Song, 2%

* All percentages

are rounded.

Figure 11: Market Share of Low-Fare Service

Airline Share of Service by Available Seats, 6/03 (FAA Data)*

Delta Song, 4%

Spirit, 6%

Frontier, 8%

Airtran, 10%

American 

Trans Air, 

13%

JetBlue, 17%

Southwest, 

41%

Other, 1%

* All percentages

are rounded.

Figure 12: Low-Fare Service Growth

Airline Share of Growth by Available Seats, 6/03 vs. 6/98 (FAA Data)*

-44%

-18%

0%

142%

-90%

-60%

-30%

0%

30%

60%

90%

120%

150%

180%

Turboprop Large Jets Piston Regional Jets

Type of Aircraft

Percentage

Figure 13: Type of Aircraft

Percent Change in Number of Scheduled Flights by Type of Aircraft 6/03 

vs. 6/00 (FAA Data)

0% 15% 30% 45% 60% 75%

Cincinnati

Houston

Newark

Reagan National

Dallas-Ft. Worth

Salt Lake City

Boston

LaGuardia

Atlanta

Chicago O'Hare

Pittsburgh

Charlotte

Kennedy

Detroit

Orlando

St. Louis

Philadelphia

San Francisco

Denver

Phoenix

Minneapolis

Dulles

Los Angeles

Tampa

Miami

Fort Lauderdale

Baltimore

Seattle

San Diego

Las Vegas

Honolulu

June 2000 June 2003

Figure 14: RJs at Large Airports

RJs Share of Scheduled Flights at 31 Largest Airports 6/03 vs. 6/00 

(FAA Data)

 8
Airline Industry Metrics

0

20,000

40,000

60,000

80,000

100,000

120,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Number of Delays

2000 2001 2002 2003

Figure 16: Arrival Delays (FAA Data)

Apr '03 v '00

-60%

0

20,000

40,000

60,000

80,000

100,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Number of Delays

2000 2001 2002 2003

Figure 17: Departure Delays (FAA Data)

Apr '03 v '00

-61%

0

4,000

8,000

12,000

16,000

20,000

24,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Number of Cancellations

2000 2001 2002 2003

Figure 18: Cancellations (FAA Data)

Apr '03 v '00

-76%

Sep '01 

64,947

0%

10%

20%

30%

40%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Percentage

2000 2001 2002 2003

Figure 19: Percent of Flights Arriving Late 

(FAA Data)

Apr '03 

12%

Dec '00 

33%

0%

10%

20%

30%

40%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Percentage

2000 2001 2002 2003

Figure 20: Percent of Flights Departing Late

(FAA Data)

Apr '03

10%

Dec '00

31%

54%

58% 58% 57%

8%

11%

21%

16%

25% 28%

21%

18%

6% 6% 6% 7%

0%

10%

20%

30%

40%

50%

60%

70%

6/2000 6/2001 6/2002 6/2003

Percentage

Large Jets Regional Jets

Turboprop Piston

Figure 15: Market Share by Aircraft Type

Percent Share of Scheduled Flights by Type of Aircraft (FAA Data)*

* All percentages

are rounded.

 9
Airline Industry Metrics

-50%

-40%

-30%

-20%

-10%

0%

10%

Jan-01

Feb-01

Mar-01

Apr-01

May-01

Jun-01

Jul-01

Aug-01

Sep-01

Oct-01

Nov-01

Dec-01

Jan-02

Feb-02

Mar-02

Apr-02

May-02

Jun-02

Jul-02

Aug-02

Sep-02

Oct-02

Nov-02

Dec-02

*Analyzed by Deutsche 

Bank Securities Inc. 

Percentage

Business Leisure

Figure 23: Business and Leisure Travel

Percent Change in Business and Leisure Travel from 2000 (ATA Data)*

Dec '02

Business

-26%

Sep '01 

Business

-47%

0%

20%

40%

60%

80%

100%

1Q 20002Q 20003Q 20004Q 20001Q 2001

2Q 2001 

3Q 20014Q 20011Q 20022Q 20023Q 20024Q 2002

Percentage

Actual Breakeven

Figure 26: Passenger Load Factors

Actual vs. Breakeven Percentages (DOT Data)

Breakeven

85%

Actual

70%

0

15

30

45

60

75

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Minutes

2000 2001 2002 2003

Figure 21: Length of Arrival Delays (FAA Data)

Apr '03

46 Minutes

Jun '00

59 Minutes

0

15

30

45

60

75

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Minutes

2000 2001 2002 2003

Figure 22: Length of Departure Delays (FAA Data)

Apr '03

47 Minutes

May '00

60 Minutes

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Average Fares

2000 2001 2002 2003

Figure 24: Air Fares for Major Network Airlines

Average Fare for 1,000 Mile Trip, Excluding Taxes (ATA Data)

May '03

$118

Oct '00 

$151

-25%

-20%

-15%

-10%

-5%

0%

5%

Jan-01

Mar-01

May-01

Jul-01

Sep-01

Nov-01

Jan-02

Mar-02

May-02

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Percentage

Figure 25: Airline Yield

Percent Change in Airline Yield from 2000 (ATA Data)

Oct '01

-19%

May '03

-20%

 10
Airline Industry Metrics

$9.4

$10.2

$10.9 $11.5

$12.2 $12.8

$11.9 $12.6

$13.3

$14.1

$14.9

$15.8

$0

$2

$4

$6

$8

$10

$12

$14

$16

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Billions

February 2003 Pre-September 11

Figure 32: Airport and Airway Trust Fund

Estimated Revenues 2/03 vs. Pre-9/11 (FAA Data)

28%

61% 71% 72% 86% 88% 89%

108%

314%

0%

50%

100%

150%

200%

250%

300%

350%

Southwest

Alaska

America

West

Northwest

American

Continental

Delta

United

US Airways

Percentage

Figure 31: Debt to Investment Ratio by Airline

Airline Debt to Investment Ratio for Quarter Ending 12/02

(DOT Data)

0%

20%

40%

60%

80%

100%

120%

Southwest

Delta

Continental

Alaska

America

West

US Airways

American

Northwest

United

Percentage

Actual Breakeven

Figure 27: Individual Airline Load Factors

Actual vs. Breakeven Percentages for Quarter Ending 12/02 (DOT Data)

$0

$5

$10

$15

$20

$25

$30

1Q 20002Q 20003Q 20004Q 20001Q 2001

2Q 2001 

3Q 20014Q 20011Q 20022Q 20023Q 20024Q 2002

Billions

Operating Revenues Operating Expenses

Figure 28: Revenues vs. Expenses

Airline Operating Revenues vs. Operating Expenses (DOT Data)

Expenses

$21.8

Revenues

$18.9

50% 48% 48% 53% 54% 54%

60% 66% 68% 70% 73%

87%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q 20002Q 20003Q 20004Q 20001Q 20012Q 20013Q 20014Q 20011Q 20022Q 20023Q 20024Q 2002

Percentage

Figure 30: Debt to Investment Ratio

Airline Debt to Investment Ratio for All Major Airlines (DOT Data)

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Average Costs

2000 2001 2002 2003

Figure 29: Cost Per Gallon for Jet Fuel (ATA Data)

Apr '03 v '02 

+20%

 11
Airline Industry Metrics

Figure 34: Regional Differences at Non-Hubs

Percent Change in Available Seats at Non-Hub Airports 6/03 vs. 6/00

(FAA Data)

National Average -18%

West

-8%

Midwest

-26%

Northeast

-36%

South

-18%

$0

$20

$40

$60

$80

$100

$120

$140

FY 99 FY 00 FY 01 FY 02 FY 03 FY 04*

Appropriations

(Millions)

0

20

40

60

80

100

120

140

EAS Communities

Appropriations

Subsidized Communities

Figure 38: Essential Air Service

Congressional Funding and Subsidized Communities (DOT Data)

*President's proposed FY '04 budget.

?

-40%

-30%

-20%

-10%

0%

10%

20%

Jan-99

May-99

Sep-99

Jan-00

May-00

Sep-00

Jan-01 

May-01 

Sep-01 

Jan-02 

May-02 

Sep-02

Jan-03

May-03

Sep-03

Percentage

Non-Hub Airports Larger Airports

Figure 33: Non-Hub vs. Larger Airports 

Percent Change in Available Seats from 1998 (FAA Data)

Larger 

Airports

-4%

Non-Hub 

Airports

-18%

-13%

-6% -5%

-23%

-30%

-25%

-20%

-15%

-10%

-5%

0%

Large to Large Medium to Large Small to Large Non-Hub to

Large

Percentage

Figure 35: Access to Large Airports

Percent Change in Number of Scheduled Flights 6/03 vs. 6/00

(FAA Data)

-35% -29%

0%

155%

-100%

-50%

0%

50%

100%

150%

200%

Turboprop Large Jets Piston Regional Jets

Type of Aircraft

Percentage

Figure 36: Type of Aircraft at Non-Hub Airports

Percent Change in Scheduled Flights by Type of Aircraft 6/03 vs. 6/00 (FAA 

Data)

21% 21% 20% 19%

2% 3% 3% 3%

77% 77% 77% 78%

0%

25%

50%

75%

100%

6/2000 6/2001 6/2002 6/2003

Percentage

Network Low Fare All Others

Figure 37: Airline Market Share at Non-Hubs

Airline Market Share by Available Seats at Non-Hub Airports

(FAA Data)*

* All percentages

are rounded.

 12
Airline Industry Metrics 

Figure 1: Passenger Enplanements 

Percent Change in Revenue Passenger Enplanements from 2000 

(ATA Data) 

Month 

2001 

(Percent Change 

from 2000) 

2002 

(Percent Change 

from 2000) 

2003 

(Percent Change 

from 2000) 

January 4% -10% -8%

February -3% -15% -16%

March -2% -12% -16%

April 0% -13% -18%

May -2% -13% -17%

June -2% -13% Not Given

July 0% -11% Not Given

August 3% -8% Not Given

September -34% -16% Not Given

October -22% -14% Not Given

November -19% -18% Not Given

December -14% -4% Not Given

Note: September 2001 Enplanements Down 34 Percent 

Note: May 2003 Enplanements Down 17 Percent 

508 Compliant 7-03.doc 

07/03/2003 
Figure 2: Capacity versus Demand 

Percent Change in Available Seat Miles Versus Revenue Passenger 

Miles from 2000 (ATA Data) 

Month 

2001 

Change in

Available 

Seat Miles 

2001 

Change in

Revenue 

Passenger 

Miles 

2002 

Change in

Available 

Seat Miles 

2002 

Change in

Revenue 

Passenger 

Miles 

2003 

Change in

Available 

Seat Miles 

2003 

Change in

Revenue 

Passenger 

Miles 

January 5% 6% -8% -7% -6% -1%

February -1% -2% -12% -11% -14% -11%

March 0% 0% -9% -7% -10% -10%

April 2% 0% -7% -10% -11% -12%

May 3% -2% -6% -9% -12% -11%

June 3% -1% -4% -8% Not Given Not Given

July 4% 1% -3% -6% Not Given Not Given

August 4% 4% -4% -4% Not Given Not Given

September -19% -32% -8% -12% Not Given Not Given

October -15% -20% -9% -10% Not Given Not Given

November -14% -17% -10% -14% Not Given Not Given

December -10% -12% -6% 0% Not Given Not Given

Note: May 2003 Available Seat Miles Down 12 Percent 

Note: May 2003 Revenue Passenger Miles Down 11 Percent 

508 Compliant 7-03.doc 

07/03/2003 
Figure 3: Actual Flight Operations 

Percent Change in Air Route Traffic Control Center Operations 

from 2000 (FAA Data) 

Month 

2001 

Percent Change 

in Operations 

2002 

Percent Change 

in Operations 

2003 

Percent Change 

in Operations 

 January 5% -3% 0%

 February -4% -8% -10%

 March -2% -7% -7%

 April 0% -3% -5%

 May -1% -4% -7%

 June -3% -4% Not Given

 July 1% -1% Not Given

 August 0% -4% Not Given

 September -16% -5% Not Given

 October -8% -4% Not Given

 November -8% -7% Not Given

 December -5% -1% Not Given

Note: September 2001 Actual Flight Operations Down 16 Percent 

Note: May 2003 Actual Flight Operations Down 7 Percent 

Figure 4: Major Airlines Actual Arrivals 

Percent Change in Actual Arrivals by Airline April 2003 Versus April 2000 

(FAA Data) 

Airline 

2003 

Percentage 

Change 

Southwest 9%

Alaska 2%

America West -2%

Northwest -6%

Continental -19%

American -20%

Delta -27%

United -29%

US Airways -38%

508 Compliant 7-03.doc 

07/03/2003 
Figure 5: Scheduled Capacity

Percent Change in Scheduled Flights and Available Seats at 

All Airports from 2000 (FAA Data) 

Month 

2001 

Percent 

Change 

in Flights 

2001 

Percent 

Change 

in Seats 

2002 

Percent 

Change 

in Flights 

2002 

Percent 

Change 

in Seats 

2003 

Percent 

Change 

in Flights 

2003 

Percent 

Change in

Seats 

January 2% 3% -11% -10% -11% -11%

February 0% 2% -11% -10% -12% -12%

March -1% 1% -11% -10% -12% -12%

April 1% 1% -8% -8% -11% -12%

May 0% 1% -9% -8% -14% -15%

June 0% 1% -8% -7% -12% -13%

July 1% 2% -7% -6% -9% -11%

August 0% 1% -7% -7% -11% -13%

September -1% 0% -10% -10% -10% -12%

October -5% -4% -11% -11% Not Given Not Given 

November -15% -15% -12% -12% Not Given Not Given

December -15% -14% -11% -12% Not Given Not Given

Figure 6: Regional Differences at All Airports 

Percent Change in Available Seats at All Airports June 2003 Versus June 2000 

(FAA Data) 

Region 

Percent Change 

in Available 

Seats 

Northeast (includes Connecticut, Maine, Massachusetts, 

New Hampshire, New Jersey, New York, Pennsylvania,

Rhode Island, Vermont) 

-18%

Midwest (includes Illinois, Indiana, Iowa, Kansas, 

Michigan, Minnesota, Missouri, Nebraska, North Dakota, 

Ohio, South Dakota, Wisconsin) 

-13%

West (includes Alaska, Arizona, California, Colorado,

Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, 

Utah, Washington, Wyoming) 

-13%

South (includes Alabama, Arkansas, Delaware, Florida, 

Georgia, Kentucky, Louisiana, Maryland, Mississippi,

North Carolina, Oklahoma, South Carolina, Tennessee,

Texas, Virginia, West Virginia) 

-11%

National Average -13%

508 Compliant 7-03.doc 

07/03/2003 
Figure 7: Large Airports 

Percent Change in Scheduled Flights and Available Seats at the 

31 Largest Airports June 2003 Versus June 2000 (FAA Data) 

Largest Airports Percent Change 

in Flights 

Percent Change in 

Available Seats 

Fort Lauderdale 2% 11%

Baltimore -12% 0%

Kennedy -39% -4%

Las Vegas -6% -5%

Salt Lake City 9% -5%

Houston -4% -5%

Charlotte -1% -5%

Tampa -16% -5%

Minneapolis -3% -7%

San Diego -6% -7%

Atlanta -2% -7%

Detroit -2% -7%

Cincinnati 8% -8%

Seattle -15% -8%

LaGuardia 2% -9%

Phoenix -9% -10%

Orlando -16% -10%

Denver -7% -11%

Chicago O’Hare -1% -11%

Philadelphia -10% -12%

Dallas-Ft. Worth -9% -14%

Miami -28% -16%

Reagan National -4% -17%

Newark -14% -20%

Los Angeles -26% -26%

Boston -31% -27%

Pittsburgh -21% -28%

Honolulu -20% -28%

St. Louis -17% -32%

Dulles -43% -32%

San Francisco -31% -32%

508 Compliant 7-03.doc 

07/03/2003 
Figure 8: Length of Flight 

Percent Change in Scheduled Flights by Length of Flight 

June 2003 Versus June 2000 (FAA Data) 

Range in Miles 

2003 

Percent Change 

in Flights 

0 to 249 miles -24%

250 to 499 miles -12%

500 to 999 miles 5%

1,000 miles or more -2%

Figure 9: Short Haul Flights by Type of Airline 

Percent Change in Scheduled Flights Less Than 250 Miles by 

Type of Airline June 2003 Versus June 2000 (FAA Data) 

Type of Air Carrier

2003 

Percent Change 

in Type 

Network -39%

Low Fare -6%

All Others -22%

Figure 10: Airline Market Share 

Airline Market Share by Available Seats (FAA Data) 

Carrier Type June 

2000 

June 

2001 

June 

2002 

June 

2003 

 Network 65% 64% 60% 56%

 Low Fare 15% 17% 19% 21%

 All Others 20% 20% 21% 23%

Note: All percentages are rounded. 

508 Compliant 7-03.doc 

07/03/2003 
Figure 11: Market Share of Low-Fare Service 

Airline Share of Service by Available Seats, June 2003 (FAA Data) 

Low-Fare Airline Market Share 

Percentage 

Southwest 68%

Airtran 9%

American Trans Air 8%

JetBlue 6%

Frontier 4%

Spirit 3%

Delta Song 2%

Other 1%

Note: All Percentages are rounded. 

Figure 12: Low-Fare Service Growth 

Airline Share of Growth by Available Seats, June 2003 Versus June 1998 

(FAA Data) 

Low-Fare Airline Service Growth 

Percentages 

Southwest 41%

JetBlue 17%

American Trans Air 13%

Airtran 10%

Frontier 8%

Spirit 6%

Delta Song 4%

Other 1%

Note: All percentages are rounded. 

Figure 13: Type of Aircraft 

Percent Change in Number of Scheduled Flights by Type of Aircraft 

June 2003 Versus June 2000 (FAA Data) 

Type of 

Aircraft 

Percent Change in

Flights 

Turboprop -44%

Large Jets -18%

Piston 0%

Regional Jets 142%

508 Compliant 7-03.doc 

07/03/2003 
Figure 14: Regional Jets at Large Airports

Regional Jets Share of Scheduled Flights at 31 Largest Airports June 2003 

Versus June 2000 (FAA Data) 

Largest Airports June 2000 

Percentage 

Share of Flights 

June 2003 

Percentage 

Share of Flights 

Cincinnati 55% 72%

Houston 14% 40%

Newark 10% 36%

Reagan National 7% 32%

Dallas-Ft. Worth 6% 31%

Salt Lake City 11% 31%

Boston 7% 30%

LaGuardia 14% 30%

Atlanta 9% 25%

Chicago O’Hare 14% 24%

Pittsburgh 2% 21%

Charlotte 3% 19%

Kennedy 4% 18%

Detroit 2% 18%

Orlando 4% 17%

St. Louis 4% 16%

Philadelphia 6% 16%

San Francisco 0% 14%

Denver 1% 14%

Phoenix 5% 11%

Minneapolis 1% 11%

Dulles 16% 9%

Los Angeles 0% 8%

Tampa 0% 7%

Miami 2% 6%

Fort Lauderdale 2% 5%

Baltimore 1% 5%

Seattle 0% 3%

San Diego 0% 3%

Las Vegas 0% 1%

Honolulu 0% 0%

508 Compliant 7-03.doc 

07/03/2003 
Figure 15: Market Share by Aircraft Type

Percent Share of Scheduled Flights by Type of Aircraft (FAA Data) 

Aircraft Type 

June 

2000 

June 

2001 

June 

2002 

June 

2003 

Large Jets 58% 58% 57% 54%

Regional Jets 8% 11% 16% 21%

Turboprop 28% 25% 21% 18%

Piston 6% 6% 6% 7%

Note: All percentages are rounded. 

Figure 16: Arrival Delays (FAA Data) 

Month 

2000 

Arrival 

Delays 

2001 

Arrival 

Delays

2002 

Arrival 

Delays

2003 

Arrival 

Delays

January 71,485 69,926 49,657 37,552

February 69,499 72,135 36,355 45,191

March 71,757 73,004 57,281 41,095

April 74,655 61,285 46,842 29,885

May 77,400 56,141 47,038 Not Given

June 100,115 72,641 56,011 Not Given

July 93,399 69,392 54,355 Not Given

August 96,550 76,237 47,160 Not Given

September 66,251 38,967 30,598 Not Given

October 75,543 39,694 41,050 Not Given

November 81,731 38,464 37,357 Not Given

December 105,180 52,064 54,108 Not Given

Note: April 2003 Versus April 2000 Down 60 Percent 

508 Compliant 7-03.doc 

07/03/2003 
Figure 17: Departure Delays (FAA Data) 

Month 

2000 

Departure 

Delays

2001 

Departure 

Delays

2002 

Departure 

Delays

2003 

Departure 

Delays

January 59,344 62,032 40,524 30,598

February 59,316 61,044 30,542 36,228

March 61,678 65,503 49,324 32,712

April 63,372 53,421 37,751 24,496

May 67,571 47,207 37,706 Not Given

June 90,115 63,980 49,880 Not Given

July 85,049 62,108 49,973 Not Given

August 85,760 67,209 42,680 Not Given

September 55,667 39,229 25,672 Not Given

October 63,742 41,444 32,072 Not Given

November 70,997 35,169 28,495 Not Given

December 98,386 48,710 47,855 Not Given

Note: April 2003 Versus April 2000 Down 61 Percent 

Figure 18: Cancellations (FAA Data) 

Month 

2000 

Cancellations 

2001 

Cancellations 

2002 

Cancellations 

2003 

Cancellations 

January 18,512 12,077 4,199 2,813

February 11,477 10,706 2,361 8,873

March 7,585 11,753 3,063 3,743

April 8,853 7,086 2,265 2,096

May 12,835 5,796 2,399 Not Given

June 14,407 10,135 4,621 Not Given

July 11,985 7,189 3,659 Not Given

August 11,538 8,528 2,834 Not Given

September 8,057 64,947 1,861 Not Given

October 7,977 2,966 2,188 Not Given

November 8,150 2,371 1,767 Not Given

December 21,333 2,161 4,057 Not Given

Note: April 2003 Versus April 2000 Down 76 Percent 

Note: September 2001 Cancellations Totaled 64,947 

508 Compliant 7-03.doc 

07/03/2003 
Figure 19: Percent of Flights Arriving Late 

(FAA Data) 

Month 2000 2001 2002 2003

January 23% 21% 18% 14%

February 23% 24% 14% 19%

March 22% 22% 20% 15%

April 23% 19% 17% 12%

May 24% 17% 16% Not Given

June 32% 22% 20% Not Given

July 28% 21% 18% Not Given

August 29% 22% 16% Not Given

September 21% 16% 11% Not Given

October 23% 14% 14% Not Given

November 26% 14% 14% Not Given

December 33% 19% 20% Not Given

Note: April 2003 12 Percent of Flights Arrived Late 

Note: December 2000 33 Percent of Flights Arrived Late 

Figure 20: Percent of Flights Departing Late 

(FAA Data) 

Month 2000 2001 2002 2003

January 19% 19% 15% 11%

February 20% 21% 12% 15%

March 19% 20% 17% 12%

April 20% 17% 14% 10%

May 21% 14% 13% Not Given

June 28% 20% 17% Not Given

July 26% 18% 17% Not Given

August 26% 20% 14% Not Given

September 17% 16% 9% Not Given

October 19% 15% 11% Not Given

November 22% 13% 11% Not Given

December 31% 18% 18% Not Given

Note: April 2003 10 Percent of Flights Departed Late 

Note: December 2000 31 Percent of Flights Departed Late 

508 Compliant 7-03.doc 

07/03/2003 
Figure 21: Length of Arrival Delays (FAA Data) 

Month 

2000 

(In Minutes) 

2001 

(In Minutes)

2002 

(In Minutes) 

2003 

(In Minutes) 

January 49 47 44 45

February 51 50 41 48

March 50 49 44 46

April 52 51 47 46

May 58 47 47 Not Given

June 59 57 55 Not Given

July 58 52 51 Not Given

August 55 56 49 Not Given

September 50 55 47 Not Given

October 49 44 42 Not Given

November 48 43 43 Not Given

December 54 42 53 Not Given

Note: April 2003 Arrivals Delayed 46 Minutes 

Note: June 2000 Arrivals Delayed 59 Minutes 

Figure 22: Length of Departure Delays (FAA Data) 

Month 

2000 

(In Minutes) 

2001 

(In Minutes) 

2002 

(In Minutes) 

2003 

(In Minutes) 

January 51 49 46 46

February 53 52 43 48

March 53 51 45 47

April 54 53 49 47

May 60 49 48 Not Given

June 59 58 54 Not Given

July 60 54 51 Not Given

August 56 57 50 Not Given

September 52 55 48 Not Given

October 52 42 45 Not Given

November 50 44 46 Not Given

December 55 42 52 Not Given

Note: April 2003 Departures Delayed 47 Minutes 

Note: May 2000 Departures Delayed 60 Minutes 

508 Compliant 7-03.doc 

07/03/2003 
Figure 23: Business and Leisure Travel 

Percent Change in Business and Leisure Travel from 2000 

Analyzed by Deutsche Bank Securities Inc. (ATA Data) 

Month 

2001 

Change in

Business 

2001 

Change in

Leisure 

2002 

Change in

Business 

2002 

Change in

Leisure 

January -10% 4% -30% -11%

February -19% -3% -35% -15%

March -20% -1% -34% -12%

April -18% 0% -29% -15%

May -23% -1% -32% -14%

June -20% -1% -32% -13%

July -18% 1% -26% -12%

August -19% 4% -28% -8%

September -47% -34% -31% -16%

October -37% -23% -30% -14%

November -31% -20% -32% -19%

December -23% -15% -26% -4%

Note: September 2001 Business Travel Down 47 percent 

Note: December 2002 Business Travel Down 26 Percent 

508 Compliant 7-03.doc 

07/03/2003 
Figure 24: Air Fares for Major Network Airlines 

Average Fare for 1,000 Mile Trip, Excluding Taxes (ATA Data) 

Month 

2000 

Average 

Fare Cost 

2001 

Average 

Fare Cost

2002 

Average 

Fare Cost 

2003 

Average 

Fare Cost 

January $143 $148 $124 $119

February $150 $151 $130 $123

March $149 $145 $126 $121

April $147 $143 $126 $120

May $147 $136 $123 $118

June $145 $133 $120 Not Given

July $134 $122 $111 Not Given

August $139 $121 $109 Not Given

September $147 $120 $121 Not Given

October $151 $123 $124 Not Given

November $149 $125 $120 Not Given

December $139 $119 $117 Not Given

Note: May 2003 Air Fare $118 

Note: October 2000 Air Fare $151 

508 Compliant 7-03.doc 

07/03/2003 
Figure 25: Airline Yield 

Percent Change in Airline Yield from 2000 (ATA Data) 

Month 

2001 

Percent Change 

in Yield 

2002 

Percent Change 

 in Yield 

2003 

Percent Change 

in Yield 

January 4% -13% -16%

February 0% -13% -18%

March -3% -16% -19%

April -3% -14% -18%

May -7% -16% -20%

June -9% -17% Not Given

July -9% -18% Not Given

August -13% -21% Not Given

September -18% -17% Not Given

October -19% -18% Not Given

November -16% -20% Not Given

December -15% -16% Not Given

Note: October 2001 Yield Down 19 Percent 

Note: May 2003 Yield Down 20 Percent 

508 Compliant 7-03.doc 

07/03/2003 
Figure 26: Passenger Load Factors 

Actual Versus Breakeven Percentages (DOT Data) 

Quarter 

Actual 

Load Factor

Breakeven 

Load Factor 

First Quarter 2000 69% 68%

Second Quarter 2000 76% 67%

Third Quarter 2000 76% 71%

Fourth Quarter 2000 70% 72%

First Quarter 2001 68% 74%

Second Quarter 2001 74% 76%

Third Quarter 2001 72% 88%

Fourth Quarter 2001 66% 90%

First Quarter 2002 70% 85%

Second Quarter 2002 74% 83%

Third Quarter 2002 74% 87%

Fourth Quarter 2002 70% 85%

Note: Fourth Quarter 2002 Breakeven Load Factor 85 Percent 

Note: Fourth Quarter 2002 Actual Load Factor 70 Percent 

Figure 27: Individual Airline Load Factors

Actual Versus Breakeven Percentages for Quarter Ending December 2002 

(DOT Data) 

Airline 

Actual 

Load Factor

Breakeven 

Load Factor 

Southwest 63% 58%

Delta 66% 74%

Continental 71% 75%

Alaska 67% 81%

America West 73% 82%

US Airways 68% 82%

American 70% 89%

Northwest 74% 103%

United 72% 106%

508 Compliant 7-03.doc 

07/03/2003 
Figure 28: Revenues Versus Expenses

Airline Operating Revenues Versus Operating Expenses (DOT Data) 

Quarter Operating Revenues 

In Billions 

Operating Expenses 

In Billions 

First Quarter 2000 $22.6 $21.8 

Second Quarter 2000 $25.4 $22.6 

Third Quarter 2000 $25.9 $24.0 

Fourth Quarter 2000 $24.2 $24.1 

First Quarter 2001 $23.3 $24.1 

Second Quarter 2001 $24.3 $25.0 

Third Quarter 2001 $21.2 $24.4 

Fourth Quarter 2001 $16.6 $20.9 

First Quarter 2002 $18.2 $20.9 

Second Quarter 2002 $20.4 $21.9 

Third Quarter 2002 $20.2 $22.6 

Fourth Quarter 2002 $18.9 $21.8 

Note: Fourth Quarter 2002 Operating Expenses Were $21.8 Billion 

Note: Fourth Quarter 2002 Operating Revenues Were $18.9 Billion 

Figure 29: Cost Per Gallon for Jet Fuel (ATA Data) 

Month 2000 

Average Cost 

2001 

Average Cost 

2002 

Average Cost 

2003 

Average Cost 

January $0.70 $0.86 $0.60 $0.84

February $0.73 $0.85 $0.62 $0.88

March $0.75 $0.80 $0.62 $1.05

April $0.74 $0.77 $0.69 $0.83

May $0.72 $0.78 $0.70 Not Given

June $0.70 $0.81 $0.67 Not Given

July $0.77 $0.77 $0.71 Not Given

August $0.78 $0.77 $0.72 Not Given

September $0.86 $0.79 $0.77 Not Given

October $0.89 $0.71 $0.81 Not Given

November $0.89 $0.66 $0.77 Not Given

December $0.91 $0.57 $0.76 Not Given

Note: April 2003 Jet Fuel Cost Was 20 Percent Higher Than April 2002 

508 Compliant 7-03.doc 

07/03/2003 
Figure 30: Debt to Investment Ratio 

Airline Debt to Investment Ratio for All Major Airlines (DOT Data) 

Quarter Ratio 

(Percentage) 

First Quarter 2000 50%

Second Quarter 2000 48%

Third Quarter 2000 48%

Fourth Quarter 2000 53%

First Quarter 2001 54%

Second Quarter 2001 54%

Third Quarter 2001 60%

Fourth Quarter 2001 66%

First Quarter 2002 68%

Second Quarter 2002 70%

Third Quarter 2002 73%

Fourth Quarter 2002 87%

Figure 31: Debt to Investment Ratio by Airline 

Airline Debt to Investment Ratio for Quarter Ending December 2002 

(DOT Data) 

Airlines Ratio 

(Percentage)

Southwest 28%

Alaska 61%

America West 71%

Northwest 72%

American 86%

Continental 88%

Delta 89%

United 108%

US Airways 314%

508 Compliant 7-03.doc 

07/03/2003 
Figure 32: Airport and Airway Trust Fund 

Estimated Revenues February 2003 Versus Pre-September 11, 2001 (FAA Data) 

Fiscal Year February 2003 

(In Billions) 

Pre-September 11 

(In Billions) 

2003 $9.4 $11.9

2004 $10.2 $12.6

2005 $10.9 $13.3

2006 $11.5 $14.1

2007 $12.2 $14.9

2008 $12.8 $15.8

508 Compliant 7-03.doc 

07/03/2003 
Figure 33: Non-Hub Versus Larger Airports 

Percent Change in Available Seats from 1998 (FAA Data) 

Month Non-Hub 

Airports 

Larger 

Airports 

January 1999 -2% 5%

February 1999 0% 6%

March 1999 0% 7%

April 1999 0% 7%

May 1999 0% 9%

June 1999 -1% 8%

July 1999 -2% 7%

August 1999 0% 8%

September 1999 0% 7%

October 1999 0% 8%

November 1999 3% 8%

December 1999 2% 7%

January 2000 -2% 10%

February 2000 3% 15%

March 2000 0% 12%

April 2000 -2% 12%

May 2000 1% 13%

June 2000 -2% 11%

July 2000 -3% 9%

August 2000 -3% 11%

September 2000 -3% 9%

October 2000 -1% 11%

November 2000 0% 11%

December 2000 -4% 10%

January 2001 -4% 14%

February 2001 -5% 13%

March 2001 -6% 13%

April 2001 -7% 13%

May 2001 -5% 15%

June 2001 -8% 12%

July 2001 -8% 12%

August 2001 -8% 13%

September 2001 -10% 10%

October 2001 -10% 8%

508 Compliant 7-03.doc 

07/03/2003 
Month Non-Hub 

Airports 

Larger 

Airports 

November 2001 -18% -5%

December 2001 -19% -6%

January 2002 -17% 0%

February 2002 -17% 0%

March 2002 -17% 1%

April 2002 -15% 3%

May 2002 -14% 4%

June 2002 -16% 3%

July 2002 -15% 4%

August 2002 -13% 3%

September 2002 -18% -1%

October 2002 -18% 0%

November 2002 -18% -2%

December 2002 -19% -4%

January 2003 -21% -1%

February 2003 -19% -2%

March 2003 -19% -1%

April 2003 -20% -1%

May 2003 -20% -4%

June 2003 -19% -3%

July 2003 -17% -3%

August -17% -3%

September -18% -4%

Note: September 2003 Larger Airports Down 4 Percent 

Note: September 2003 Non-Hub Airports Down 18 Percent 

508 Compliant 7-03.doc 

07/03/2003 
Figure 34: Regional Differences at Non-Hubs

Percent Change in Available Seats at Non-Hub Airports 

June 2003 Versus June 2000 (FAA Data) 

Region 

Percent Change 

in Available 

Seats 

Northeast (includes Connecticut, Maine, Massachusetts, 

New Hampshire, New Jersey, New York, Pennsylvania,

Rhode Island, Vermont) 

-36%

Midwest (includes Illinois, Indiana, Iowa, Kansas, 

Michigan, Minnesota, Missouri, Nebraska, North Dakota, 

Ohio, South Dakota, Wisconsin) 

-26%

South (includes Alabama, Arkansas, Delaware, Florida, 

Georgia, Kentucky, Louisiana, Maryland, Mississippi,

North Carolina, Oklahoma, South Carolina, Tennessee,

Texas, Virginia, West Virginia) 

-18%

West (includes Alaska, Arizona, California, Colorado,

Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, 

Utah, Washington, Wyoming) 

-8%

National Average -18%

Figure 35: Access to Large Airports 

Percent Change in Number of Scheduled Flights June 2003 Versus June 2000 

(FAA Data) 

Hub Access 

Percent Change 

In Flights 

Large Hub to Large Hub -13%

Medium Hub to Large Hub -6%

Small Hub to Large Hub -5%

Non-Hub to Large Hub -23%

508 Compliant 7-03.doc 

07/03/2003 
508 Compliant 7-03.doc 

07/03/2003 

Figure 36: Type of Aircraft at Non-Hub Airports 

Percent Change in Scheduled Flights by Type of Aircraft 

June 2003 Versus June 2000 (FAA Data) 

Aircraft Type Percent Change 

Turboprop -35% 

Large Jets -29% 

Piston 0% 

Regional Jets 155% 

Figure 37: Airline Market Share at Non-Hubs 

Airline Market Share by Available Seats at Non-Hub Airports 

(FAA Data) 

Airline Market June 

2000 

June 

2001 

June 

2002 

June 

2003 

Network 21% 21% 20% 19% 

Low Fare 2% 3% 3% 3% 

All Others 77% 77% 77% 78% 

Note: All Percentages are rounded. 

Figure 38: Essential Air Service 

Congressional Funding and Subsidized Communities (DOT Data) 

Fiscal Year Appropriations 

In Millions 

Number of 

Communities 

Subsidized 

1999 $50 100 

2000 $50 106 

2001 $50 115 

2002 $113 123 

2003 $113 125 

President’s Proposed Budget 2004 $50 Undetermined