AVIATION INDUSTRY PERFORMANCE 

A Review of Summer 2007 Aviation System Performance 

Number: CC-2008-039 

Date Issued: December 27, 2007 
U.S. Department of 

Memorandum

Transportation 

Office of the Secretary 

of Transportation 

Office of Inspector General 

Subject: INFORMATION: Aviation Industry 

Performance 

Date: December 27, 2007 

From: 

David A. Dobbs 

Principal Assistant Inspector General 

 for Auditing and Evaluation 

Reply to 

Attn. of: JA-1 

To: The Secretary 

Acting Federal Aviation Administrator 

Assistant Secretary for Aviation and International Affairs 

This is the ninth in a series of periodic updates to our aviation industry 

performance report. The performance metrics were developed in 2002 as a 

mechanism for monitoring aviation industry trends, including domestic demand 

and capacity, aviation system performance, airline finances and air service in 

small communities.1

 Given the intense public interest in the summer of 2007 

period, this report will focus specifically on industry performance, during the June 

through August 2007 period. 

Record numbers of passengers, coupled with constraints on capacity growth by the 

airlines, yielded record high passenger load factors for domestic airlines during the 

summer of 2007. However, flight disruptions and long delays led to a sharp rise in 

consumer complaints. Consequently, industry performance has captured the 

attention of many constituencies, including Congress, the Secretary of 

Transportation and notably the President of the United States. 

We found that on-time flight performance, during the summer of 2007, 

deteriorated broadly from last year’s already poor levels. Of the 55 airports 

tracked by FAA, the number of delayed flights increased at 51 airports and the 

average length of delays increased at 52 airports. In contrast, the number of 

scheduled flights increased at only 33 of the airports. Principally, the number, rate 

 

1

 The performance metrics are based on data collected and processed by the Department of Transportation’s Office of 

Aviation Analysis, Bureau of Transportation Statistics, Office of Airline Information, Federal Aviation 

Administration and by the Air Transport Association. 

CC-2008-039 i
and duration of flight delays increased from the summer of 2006 to the summer of 

2007. 

In response to these issues, the Secretary of Transportation announced that she 

would form a task force known as the Aviation Rulemaking Committee (ARC). 

The ARC, comprised of airline, airport and travel officials, developed measures to 

address air traffic congestion at New York’s three major airports. Additionally, 

the Secretary called a scheduling reduction meeting in October 2007 with airlines 

serving New York’s John F. Kennedy International Airport with the goal of 

achieving voluntary reductions in the number of scheduled flights at that airport. 

On December 19, 2007, the Department announced an initial agreement to cap 

hourly operations at Kennedy Airport and implement procedures, such as opening 

military airspace to civilian traffic to reduce delays. 

Attached to this report are three exhibits: Exhibit A, Summary of Aviation 

Industry Metrics, which contains detailed textual and graphic presentations of 

industry measures; Exhibit B, Scope and Methodology, which explains sources, 

analyses, and terms employed; and Exhibit C, which lists Office of Inspector 

General (OIG) contributors to the report. 

The following highlights the most significant trends that emerged since our last 

report, in August 2006,2

 and specifically during the summer of 2007. 

Summer 2007 Delays and Cancellations Exceeded Summer 2006 

Levels 

The percentage of delayed flight arrivals3

 rose from 26 percent in the summer of 

2006 to 29 percent in the summer of 2007. This represents nearly 621,000 delayed 

flights in summer 2007, an increase of 15 percent above the approximately 

539,000 delayed flights in the summer of 2006. The average length of delays rose 

from 56 minutes in the summer of 2006 to 60 minutes in the summer of 2007 (a 

6 percent increase). Delays increased far faster than the number of flights which 

increased only one percent during the summer of 2007 to just over 2.0 million 

flights at 55 large airports tracked by FAA. Of those 55 airports, 51 experienced 

an increase in the number of arrival delays, ranging from 1 percent (Chicago 

Midway) to 57 percent (Dallas/Fort Worth). The length of the delays increased at 

52 of the airports from less than a one minute increase at Phoenix to a 11 minute 

increase at Dallas/Fort Worth. 

 

2

 OIG Report Number CC-2006-073, “Aviation Industry Performance: Trends in Demand and Capacity, Aviation 

System Performance, Airline Finances and Service to Small Airports,” August 4, 2006. OIG reports can be found on 

our website: www.oig.dot.gov. 3

 A flight is considered delayed when it arrives 15 or more minutes after its scheduled arrival time. 

CC-2008-039 ii
Flight cancellation performance deteriorated from last year’s levels as well. 

Airlines cancelled nearly 48,000 flights at the 55 airports during the summer of 

2007. This was a 28 percent increase above last summer when just over 37,000 

flights were cancelled. Table 1 is a comparison of increases in the summer of 

2006 and the summer of 2007. 

Table 1. Increases in Flight Delays and Cancellations 

(Summer 2006 and Summer 2007) 

Notable Statistics Summer 2006 Summer 2007 Percent Change 

Scheduled Flights 1,986,654 2,014,279 + 1% 

Percent Delayed 26% 29% + 12% 

Airports With Delays > 30% 9 26 + 189% 

Length of Arrival Delays 56 minutes 60 minutes + 6% 

Cancelled Flights 37,396 47,911 + 28% 

* Comparison of June through August 2006 and 2007, as tracked by FAA at 55 airports. 

At New York John F. Kennedy International Airport, the summer of 2006 arrival 

delay rate was 36.7 percent, but the addition of 9,700 scheduled flights contributed 

to a summer of 2007 arrival delay rate of 41.4 percent. Although New York 

La Guardia and Newark Liberty International Airports did not experience the same 

rapid increase in the number of flights and delays, both airports still experienced 

an arrival delay rate in excess of 38 percent. With one-third of the Nation’s air 

traffic passing through the New York area, the impact of delays there can be felt 

across the country. 

Delays result from problems outside the carriers’ control such as weather, air 

traffic control as well as problems within the carriers’ control such as mechanical 

issues, crew availability and holding for connections. Carriers also report delays 

caused by “late arriving aircraft.” 

Figure 1 depicts the reasons for delays as reported by the airlines and adjusted for 

late arriving aircraft. We proportionally allocated “late arriving aircraft” delays 

across the other categories to provide a better picture of the primary causes of 

delay4

. When “late arriving aircraft” delays are allocated across the other reported 

 

4

 “Late arriving aircraft” is a secondary cause of delay, the primary cause of delay is what caused the aircraft to arrive 

late. Delays are categorized as “late arriving aircraft” when the previous flight operated with the same aircraft 

arrives late, resulting in the current flight departing late. 

CC-2008-039 iii
reasons for delays, “carrier caused” delays rise to 45 percent of delayed arrivals. 

Weather related reasons account for 35 percent. 

Figure 1. Reasons for Flight Delays 

(June through August 2007) 

As Reported by Airlines Adjusted for Late Arriving Aircraft 

Carrier Caused

29%

Weather

23%

Late Arriving 

Aircraft

35%

Runway Closure

3%

Other

6%

ATC Volume

4%

Carrier Caused

45%

Other

9%

Runw ay Closure

5%

ATC Volume

6%

Weather

35%

The Number of Scheduled Flights Remained Relatively Flat Since 

2006 

On average, domestic passenger service (scheduled flights) remained steady over 

the last year. At the country’s largest airports, scheduled departures in the 

summer of 2007 were up only 1 percent over the summer of 2006, remaining 

relatively unchanged at most of these airports. Notable exceptions occurred at 

New York Kennedy (+25 percent), San Diego, Orlando, and San Francisco (+6 

percent each) and Pittsburgh where scheduled departures declined by 11 percent. 

As figure 2 indicates, the number of scheduled flights continues to remain below 

summer 2001 levels. 

CC-2008-039 iv
Figure 2. Change in Scheduled Flights, 2001-2007 

(Base Year 2000) 

-18%

-13%

-8%

-3%

2%

Jan-01

Apr-01

Jul-01

Oct-01

Jan-02

Apr-02

Jul-02

Oct-02

Jan-03

Apr-03

Jul-03

Oct-03

Jan-04

Apr-04

Jul-04

Oct-04

Jan-05

Apr-05

Jul-05

Oct-05

Jan-06

Apr-06

Jul-06

Oct-06

Jan-07

Apr-07

Jul-07

Oct-07

Flights reach lowest point 

after 9/11 at -14% Fuel up 185% from 2000: 2.05/gallon

United, US Airways, 

Delta, and Northwest all 

operating in bankruptcy

Major Passenger Carriers Improved Their Financial Performance by 

Placing More Passengers on Essentially the Same Number of Flights 

The third quarter of 2007 marked the sixth consecutive quarter that the major 

passenger airlines, as a group, posted operating profits (nearly $2.9 billion). The 

major passenger airlines achieved these results through strict cost controls and 

strong passenger demand in concert with limited increases in domestic capacity. 

While these efforts have had a positive effect on airline financial performance, it 

also results in fewer available seats to accommodate displaced passengers from 

disrupted flights. This issue was a major contributor to the rise in airline customer 

service complaints.

On the revenue side, the average fare paid by passengers remained relatively flat. 

Despite numerous attempted fare increases in the first half of the year, competition 

and passenger resistance to increasing fares have rendered most attempts 

unsuccessful. Revenues improved as airlines added passengers to existing flights 

(rather than add additional flights and costs). Future revenue increases are 

questionable as load factors (percent of seats sold) have already hit record highs 

(83 percent in the second quarter of 2007). The airlines’ main strategy to improve 

CC-2008-039 v
revenues by increasing fares and reducing discounting must overcome passenger 

resistance to higher fares in order to be successful. 

Beginning in the second quarter of 2007, network airlines’ non-fuel domestic 

operating costs (operating costs borne by an airline excluding fuel) increased. 

Since 2001, the network airlines experienced success in reducing these costs 

through organizational changes and by reducing available capacity. However, in 

the second quarter of 2007, this combination of efforts ceased producing reduced 

non-fuel costs. Additional structural changes that will produce significant cost 

reductions like those experienced since 2001 are unlikely in the near future. As a 

result, we expect to see future increases in non-fuel operating costs. 

CC-2008-039 vi
TABLE OF CONTENTS

AVIATION SYSTEM PERFORMANCE

Figure 1: Actual Flight Operations. ........................................................................1 

Figure 2: Number of Flights With Delayed Arrivals..............................................1 

Figure 3: Cancellations ...........................................................................................2 

Figure 4: Percent of Flights Arriving Late..............................................................2 

Figure 5: Length of Arrival Delays.........................................................................3 

Figure 6: Most Significant Changes in Arrival Delays by Airport.........................3 

AIR SERVICE DEMAND AND CAPACITY

Figure 7: Domestic Passenger Enplanements 2000 - 2006....................................4 

Figure 8: Domestic Revenue Passenger-Miles and Available Seat-Miles.............4 

Figure 9: Domestic and International Revenue Passenger-Miles..........................5 

Figure 10: International Passenger Traffic ............................................................5 

Figure 11: Nine Major Airlines Reported Arrivals................................................6 

Figure 12: Regional Differences in Capacity at All Airports ................................6 

Figure 13: Change in Capacity at Large Airports..................................................7 

Figure 14: Length of Domestic Flights..................................................................8 

Figure 15: Short Haul Flights: Seats by Type of Airline......................................8 

Figure 16: Domestic and International Air Cargo Traffic ......................................9 

Figure 17: Domestic Market Share by Seller Carrier Group ..................................9 

Figure 18: Share of Low-Cost Carrier Service Growth........................................10 

Figure 19: Market Share of Low-Cost Carrier Service ........................................10 

Figure 20: Market Share by Aircraft Type ...........................................................10 

AIRLINE FINANCES 

Figure 21: Revenues versus Expenses ..................................................................11 

Figure 22: Selected Network and Low-Cost Carriers Operating 

Profit or Loss........................................................................................11 

Figure 23: Accumulated Net Losses and Gains....................................................12 

Figure 24: Domestic Cost Per Available Seat-Mile (CASM)...............................12 
Figure 25: Domestic Yield for Seven Major Airlines...........................................13 

Figure 26: Average; Short-, Medium-, and Long-Haul Fares for 

Second Quarters 2000-2006.................................................................13 

Figure 27: Use of Business Fares..........................................................................14 

Figure 28: Passenger Load Factors.......................................................................14 

Figure 29: Actual Airline Load Factors................................................................14 

Figure 30: Debt-to-Investment Ratio ...................................................................15 

Figure 31: Debt-to-Investment Ratio by Airline...................................................15 

Figure 32: Cost Per Gallon Domestic Jet Fuel......................................................16 

Figure 33: Airport and Airway Trust Fund...........................................................16 

AIR SERVICE AT SMALL AIRPORTS 

Figure 34: Changes in Service by Airport Size ....................................................17 

Figure 35: Access to Large Airports.....................................................................17 

Figure 36: Regional Differences in Service at Non-Hubs ....................................18 

Figure 37: Essential Air Service ...........................................................................18 
1

EXHIBIT A. SUMMARY OF AIRLINE INDUSTRY METRICS 

AVIATION SYSTEM PERFORMANCE 

ACTUAL FLIGHT OPERATIONS. Two years after September 11, 2001, domestic 

aircraft operations handled by FAA’s Air Route Traffic Control Centers began to 

recover and surpassed earlier levels. Domestic aircraft operations handled at these 

centers increased and reached their highest levels in December 2004 

(+7.43 percent). Over the last 12 months, operations at these Centers increased an 

average of 1.55 percent. [Figure 1] 

-20%

-15%

-10%

-5%

0%

5%

10%

Sep-01

Mar-02

Sep-02

Mar-03

Sep-03

Mar-04

Sep-04

Mar-05

Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Percentage Change

Figure 1: Actual Flight Operations

Percent Change in Air Route Traffic Control Center Operations (FAA 

Data), Sept 2001 - Sept 2007

Sept-01 -16%

Sept-07 -1%

0

50000

100000

150000

200000

250000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Delayed Arrivals

2000 2006 2007

Figure 2: Number of Flights With Delayed Arrivals 

- All airlines, 55 major airports (FAA Data)

June-Aug '07 vs '06 

+15%

ARRIVAL DELAYS DURING THE SUMMER MONTHS. At the 55 airports tracked by 

FAA, flight delays for the summer months (June-Aug '07) were the highest in 

recent years. There were 621,000 arrival delays during the period, up 15.2 percent 

over the summer of 2006 (539,000 arrival delays) and 7.0 percent above the 

summer of 2000 (580,000 arrival delays). [Figure 2]

ARRIVAL DELAYS YEAR-TO-DATE. With the exception of September, arrival 

delays for the first 9 months of 2007 are significantly higher than delays for the 

same period in 2006. On average, monthly arrival delays for the first 9 months of 

2007 were 12.4%, higher than the same period in 2006. Arrival delays for the first 

9 months of 2007 were 1,655,483 compared to the same period in 2006 

(1,472,452). During February 2007, arrival delays rose significantly over the 

previous year due to a Valentine’s Day ice storm negatively impacting flight 

operations at New York John F. Kennedy International Airport. JetBlue attempted 

to operate a number of flights during the storm, but many planes were left at deExhibit A. Summary of Airline Industry Metrics
2

icing stations for hours, some planes landed and took gates at the terminal, while 

gridlock ensued. In March, US Airways experienced more delays, partly due to a 

computer consolidation that caused passenger check-in and boarding problems 

that delayed flights. [Figure 2]

CANCELLATIONS FOR SUMMER MONTHS. During the summer of 2007 (JuneAugust) flight cancellations for 55 large airports tracked by FAA were 48,000, a 

28 percent rise over the summer of 2006 (37,396 cancellations), and 12 percent 

higher than the summer months of 2000 (42,956 cancellations). Summer 2007 

numbers were exacerbated by a crew shortage at Northwest Airlines, resulting in 

numerous cancellations. [Figure 3]

CANCELLATIONS YEAR-OVER-YEAR. Cancellations for the first 9 months of 

2007 at 55 major airports were 38 percent higher (138,934 cancellations) than 

cancellations in the first 9 months of 2006 (100,830 cancellations). In February 

cancellations doubled from last year, due to an ice-storm in the Northeast that 

caused airlines to cancel flights. [Figure 3]

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Cancellations

2000 2006 2007

Figure 3: Cancellations 

All airlines, 55 major airports (FAA Data)

June-Aug 

'06 v '07

 +28%

0%

10%

20%

30%

40%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Percentage

2000 2006 2007

Figure 4: Percent of Flights Arriving Late 

All airlines, 55 major airports (FAA Data)

June-Aug '07 

vs '06, 14%

PERCENT OF FLIGHTS ARRIVING LATE, YEAR-TO-DATE. At the 55 major 

airports tracked by FAA, the percent of flights arriving late, during the summer 

months (June-August 2007), was 3.7 percentage points higher (29.4 percent) than 

the same period in 2006 (25.7 percent) and 1.0 percentage points higher than the 

same period in 2000 (28.3 percent). The percent of flights arriving late for all of 

2006 (24.9 percent) was only slightly lower (.9 percentage point) than in all of 

2000 (26 percent). However, the percent of flights arriving late for the first 

9 months of 2007 was 29.6 percent, 2.7 percentage points higher than the first 

9 months of 2006. The percent of flights arriving late reached a peak of 

31 percent in February 2007. [Figure 4] 

Exhibit A. Summary of Airline Industry Metrics
3

LENGTH OF GATE ARRIVAL DELAYS. The length of gate arrival delays during the 

summer of 2007 at the 55 major 

airports rose 5.6 percent (an average 

59.5 minute delay), compared to the 

same period in 2006 (56.2 minute 

delay). Gate arrival delays (JuneAugust) exceeded the average length 

of delay for the summer of 2000, by 

10.2 percent (a 53.8 minute delay). 

[Figure 5] 

DELAYS AT SELECT AIRPORTS. 

During the summer 2007, Dallas/Fort 

Worth, Fort Lauderdale and Dallas 

Love airports experienced the 

greatest increases in arrival delays 

among the 55 airports tracked by FAA. Both Dallas airports suffered from severe 

weather during June 2007, which caused a large increase in the number of arrival 

delays for the entire summer of 2007, compared to a year earlier. 

0

15

30

45

60

75

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Minutes

2000 2006 2007

Figure 5: Length of Arrival Delays 

All airlines, 55 major airports (FAA Data)

June-Aug '06 56 minutes 

June-Aug '07 60 minutes

Newark, San Juan, Puerto Rico, and Louisville reported declines in the number of 

arrival delays for the summer of 2007 compared to a year earlier. The declines in 

arrival delays at Newark and San 

Juan coincided with reductions in 

flight operations at both airports. 

Although, Newark still ranked third 

highest in terms of percent of 

arriving flights delayed among the 

55 airports tracked by FAA. At 

Louisville, most of the reduction in 

delayed flight arrivals resulted 

from improvements in the on-time 

performance of cargo airline UPS. 

[Figure 6]

57%

46% 43%

-3% -5%

-10%

-0.4

-0.2

0

0.2

0.4

0.6

0.8

Dallas/ Ft.Worth

Ft. Lauderdale

Dallas Love

Newark

San Juan

Louisville

Percentage Change

Figure 6: Most Significant Changes in Arrival 

Delays by Airport - Percent Change in Arrival Delays for 

 Summer 2007 vs. 2006 (FAA Data)

Exhibit A. Summary of Airline Industry Metrics
4

AIR SERVICE DEMAND AND CAPACITY 

AIR TRAFFIC DEMAND. System passenger enplanements on U.S. airlines 

increased only 0.8 percent in 2006 

compared to 2005. This was the 

fourth consecutive year enplanements 

increased. However, the growth rate 

in 2006 was the lowest rate of growth 

during the four year period. 

Enplanements in 2006 were 744.6 

million, and exceeded 2000 levels by 

6.5 percent, almost 45 million 

passengers. In the first 9 months of 

2007, passenger enplanement growth 

resumed, increasing 3.1 percent over 

the same period in 2006. [Figure 7] 

738.6 744.6

703.7

647.5

641.0

652.9

698.9

500

550

600

650

700

750

2000 2001 2002 2003 2004 2005 2006

Millions

DOMESTIC TRAFFIC AND CAPACITY. In the first 9 months of 2007, revenue 

passenger-miles (RPMs) increased 3.2 percent over the same period of 2006 

to 468 billion. Meanwhile, available seat-miles (ASMs) grew 1.9 

percent, to 581 billion during the same time period. This continues a long-term 

moderate growth trend that began in 2001. Compared to the first 9 months of 

re up 16.5 percent while 

ASMs increased only 3.2 pe

rcent. The ca bility 

to handle increased 

passenger traffic without a 

corresponding increase in 

seat capacity resulted in a 9 

percentage point jump in 

load factor (percent of seats 

occupied) from 

72.7 percent in the third 

quarter of 2000 to 82.3 

percent) in the third quarter 

of 2007. [Figure 8]

2000, RPMs in the same period of 2007 we

rriers’ a

 of P ers asseng

Figure 7: Passenger Enplanements 2000-

2006 Scheduled Service System-Wide 

(DOT Data)

100

120

140

160

180

200

220

1Q003Q001Q013Q011Q023Q021Q033Q031Q043Q041Q053Q051Q063Q061Q073Q07

Billions

RPM ASM RPM trend ASM trend

73% Load 

Factor 3Q00

82% Load 

Factor 3Q07

Figure 8: Domestic Revenue Passenger-Miles and 

Available Seat-Miles 2000-2007 (BTS Data)

Exhibit A. Summary of Airline Industry Metrics
5

DOMESTIC AND INTERNATIONAL TRAFFIC. U.S. domestic passenger traffic 

grew 3.2 percent in the first 9 months of 2007, compared to the same period in 

2006. International traffic to and from the U.S. grew at an even faster rate 

of 4.0 percent from the same period of 2006 to 365 billion RPMs in the first 9 

months of 2007. The higher growth rate is a result of the airlines’ emphasis on 

expanding international service. Also, international travel had a slower recovery 

following the steep declines after September 11, 2001. Therefore, there is greater 

room for growth in international travel, compared to domestic travel. [Figure 9] 

70

95

120

145

170

1Q00

3Q00

1Q01

3Q01

1Q02

3Q02

1Q03

3Q03

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

3Q07

Domestic actual International actual

International trend Domestic trend

Figure 9: Domestic and International Revenue 

Passenger-Miles 2000-2007 (BTS Data)

Billions

Domestic

International

0

10

20

30

40

50

60

70

80

1Q0 0 4 Q0 0 3 Q0 1 2 Q0 2 1Q0 3 4 Q0 3 3 Q0 4 2 Q0 5 1Q0 6 4 Q0 6 3 Q0 7

Billions

Latin Atlantic Pacific

Figure 10: International Passenger Traffic 

Quarterly Revenue Passenger-Miles 1Qtr 2000-3Qtr 2007 (BTS Data)

September 11th Impact

SARS Epidemic

INTERNATIONAL PASSENGER GROWTH BY REGION. In the Atlantic region, 

which is the largest of the international air service markets, passenger traffic grew 

the highest (6.0 percent) in the first 9 months of 2007 over the same period in 

2006. The Latin American region traffic grew 4.6 percent through September of 

2007 compared to a year earlier. Growth in passenger traffic in the Pacific region 

tempered recently, up only 0.3 percent in the first 9 months of 2007, compared to a 

year ago. This was an actual decrease of 2.0 percent in the third quarter of 2007. 

[Figure 10] 

Exhibit A. Summary of Airline Industry Metrics
6

FLIGHT ARRIVALS. Between August 2000 and August 2007, seven major airlines 

reported fewer domestic flight arrivals at the 55 major airports tracked by FAA; 

the decreases ranged from 6 percent for America West to 54 percent for US 

Airways5

. In contrast, Southwest Airlines and Alaska Airlines reported increases 

in arrivals of 30 percent and 15 percent respectively. [Figure 11]

30%

15%

-6% -7%

-25%

-30% -33% -37%

-54% -65%

-55%

-45%

-35%

-25%

-15%

-5%

5%

15%

25%

35%

Southwest

Alaska

America West

Continental

Northwest

United

American

Delta

US Airways

Percent Change

Figure 11: Nine Major Airlines Reported Arrivals 

Percent Change in Actual Arrivals by Airline August 2007 vs. 

August 2000 (FAA Data 55 major airports)

National Average -11%

South

-5%

Northeast

-17%

Midwest

West -22%

-5%

Figure 12: Regional Differences in Capacity at All 

Airports

Percent Change in Available Seats at All Airports August 2007 vs. 

August 2000 (FAA Data)

Note: Excludes U.S. 

Possessions and Territories

REGIONAL DIFFERENCES IN DOMESTIC SERVICE. Nationwide, the number of 

scheduled seats on domestic flights in August 2007 was 11 percent below 

August 2000 levels. Seats declined in the Midwest (-22 percent), Northeast 

(-17 percent), South (-5 percent), and West (-5 percent). In the last year (August 

2006 to August 2007), scheduled seats nationwide increased slightly. Seats in all 

four regions either increased or experienced minimal change. [Figure 12]

 5

 We report US Airways and America West separately. Each carrier held separate operating authority during the 

time period covered in this report and reported financial and traffic data to DOT separately. 

Exhibit A. Summary of Airline Industry Metrics
7

CAPACITY AT LARGE AIRPORTS. Since 2000, the changes in scheduled flights 

and available seats into large airports varied significantly between airports. In 

August 2007, available seats at 11 of the largest U.S. airports increased over 

August 2000 levels. Airports gaining seats include Kennedy (46 percent), Fort 

Lauderdale (28 percent), and Las 

Vegas (24 percent). 

The increases at these airports 

largely reflected growth in service 

by low-cost carriers. In contrast, to 

these increases, some airports 

experienced considerable decreases. 

Airports losing seats include 

Pittsburgh (60 percent), St. Louis 

(56 percent), and Cincinnati 

(41 percent); these are airports 

where network carriers reduced 

operations as part of the industry 

restructuring that has taken place. 

[Figure 13]

-60% -40% -20% 0% 20% 40% 60%

Kennedy

Fort Lauderdale

Las Vegas

Orlando

San Diego 

Denver 

Charlotte

Tampa 

Baltimore

Houston

Salt Lake City 

Philadelphia

Atlanta

Seattle 

Phoenix

Reagan National

Dulles

LaGuardia

Honolulu

Detroit

Chicago O'Hare

Minneapolis

Dallas-Fort Worth

New ark 

Miami

Los Angeles

Boston

San Francisco

Cincinnati 

St. Louis

Pittsburgh

Scheduled Flights Available Seats

Figure 13: Change in Capacity at Large Airports

Percent Change in Scheduled Flights and Available Seats at 

Largest Airports August 2007 vs. August 2000 (FAA Data)

Exhibit A. Summary of Airline Industry Metrics
8

LOSS OF SHORT-HAUL AIR SERVICE. In August 2007, scheduled domestic flights 

were down 8 percent from August 2000. The largest decrease was in the shortest 

flights: scheduled domestic flights with stage lengths less than 250 miles were 

down 34 percent and flights between 250 miles and 499 miles were down 9 

percent. In contrast, flights of 500 to 999 miles in length increased 22 percent and 

flights of 1,000 miles or more increased 14 percent. 

The drop in short-haul flights (flights less than 250 miles in length) primarily 

reflected reductions by network carriers (-3.4 million seats) and by regional and 

other smaller airlines (-2.4 million seats). In addition, low-cost carriers reduced 

short-haul service a little during this period (-200,000 seats). [Figures 14 and 15] 

-34%

-9%

22%

14%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

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

Miles

Percent Change

Figure 14: Length of Domestic Flights

Percent Change in Scheduled Flights by Length of 

Flight August 2007 vs. August 2000 (FAA Data)

2.4

6.2

9.8

7.4

2.8

2.2

0

1

2

3

4

5

6

7

8

9

10

Network Regionals and

Others

Low-Cost

Millions of Seats

August 2000 Seats August 2007 Seats

Figure 15: Short-Haul Flights: Seats by Type of 

Airline Scheduled Available Seats on Flights Less than 250 Miles 

August 2007 vs. August 2000 (FAA Data)

DOMESTIC AND INTERNATIONAL AIR CARGO. The slow growth in the domestic 

air cargo industry that started in mid-2005 continued into 2007. In comparison, 

the pace of growth of U.S. international air cargo strengthened until the third 

quarter of 2007. Domestic air cargo stagnated as customers moved some of their 

shipping from air to less costly ground delivery networks. Revenue ton-miles 

(RTMs) for domestic cargo were 15.7 billion for the 9 months that ended 

in September 2007, down a slight 0.3 percent from the same period a year earlier. 

The slight year-to-date downturn masked a 2.4 percent drop in the third quarter, 

the first quarterly decline since third quarter 2004. At the same time, international 

air cargo (to and from the U.S.) grew 2.5 percent to 29.5 billion for the 9 months 

ended in September 2007, but also suffered a third quarter decline (-2.2 percent). 

Exhibit A. Summary of Airline Industry Metrics
9

For the 9 months that ended in September of 2007, air cargo in the Latin America 

region increased 10.3 percent over the similar period that ended in 2006 to 6.0 

billion RTMs. The Atlantic region 

experienced a 3.9 percent increase 

in air cargo moving to 19.6 billion 

RTMs in the 9 months that ended 

in September of 2007 from the 

year earlier. The Pacific area air 

cargo grew 2.6 percent to 24.5 

billion RTMs and was the only 

international area to experience a 

decline in the third quarter of 

2007. [Figure 16] 

0

2

4

6

8

10

12

1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07

Domestic International

Figure 16: Domestic and International Air Cargo 

Traffic Quarterly Revenue Ton-Miles 1Qtr 2003 - 3 Qtr 2007 (BTS Data) RTMs - billions

LOW-COST CARRIERS CONTINUE TO GAIN MARKET SHARE. Low-cost carriers 

continued to expand their share of domestic capacity (as measured by scheduled 

seats). Between August 2000 and August 2007, low-cost carriers increased their 

share of scheduled seats from 20 percent to 29 percent. Network carriers 

(including their regional airline affiliates) reduced their share from 72 percent to 

66 percent. Other carriers (Aloha 

Airlines, Hawaiian Airlines, 

Midwest Airlines, and intraAlaska carriers) reduced their 

share from 8 percent to 5 percent. 

[Figure 17] 

68% 66%

72%

28% 29%

20%

4% 5% 8%

0%

15%

30%

45%

60%

75%

August 2000 August 2006 August 2007

Percentage

Network Low-Cost Others

Figure 17: Domestic Market Share by Carrier

Group Airline Market Share of Scheduled Available Seats 

August 2000, August 2006, and August 2007

Exhibit A. Summary of Airline Industry Metrics
10

MARKET SHARE AND GROWTH OF LOW-COST CARRIERS. Southwest Airlines 

accounted for both the largest total number of scheduled seats (58 percent) among 

the low-cost carriers, and the largest total growth in low-cost service (seats) over 

the last seven years (38 percent). Together, low-cost carriers increased their 

capacity nearly 38 percent between 2000 and 2007. [Figures 18 and 19] 

Spirit 3%

Frontier 10%

JetBlue 27%

AirTran 22%

Southwest 

38%

Figure 18: Share of Low-Cost Carrier Service 

Growth Airline Share of Growth by Scheduled Available 

Seats, August 2000 to August 2007 (FAA Data)

Sun Country 

1%

Spirit 2%

Frontier 5%

JetBlue 10%

ATA 1%

AirTran 12%

Southwest 

58%

America 

West 10%

Figure 19: Market Share of Low-Cost Carrier 

Service Airline Share of Service by Scheduled Available Seats, 

August 2007 (FAA Data)

MARKET SHARE BY AIRCRAFT TYPE. In August 2000, 10 percent of domestic 

scheduled flights were on regional jets. In August 2007, regional jets account for 

33 percent of all domestic scheduled flights. Use of large jets declined from 

56 percent of scheduled flights in August 2000 to 50 percent each of the last 2 

years. Since August 2000, non-jets (turboprop and piston engine aircraft) declined 

from 34 percent to 17 percent of scheduled flights. [Figure 20] 

34%

18% 17%

10%

33% 33%

56%

49% 49%

0%

10%

20%

30%

40%

50%

60%

August 2000 August 2006 August 2007

Percentage

Non-Jet Regional Jets Large Jets

Figure 20: Market Share by Aircraft Type

Percent Share of Scheduled Flights by Type of Aircraft

August 2000, 2006, and 2007 (FAA Data) Totals may not sum 

due to rounding

Exhibit A. Summary of Airline Industry Metrics
11

AIRLINE FINANCES 

AIRLINE REVENUES AND EXPENSES. For the third quarter of 2007, operating 

revenues of the major passenger 

carriers were $34.7 billion, 

exceeding operating expenses of 

$31.9 billion. This produced an 

operating profit for the period of 

nearly $2.9 billion. This marked the 

sixth consecutive quarterly operating 

profit for the group. Since a low 

point in the fourth quarter of 2001, 

operating expenses have steadily 

increased as airlines resumed service 

cut after September 11, 2001, and 

fuel costs escalated. [Figure 21]

AIRLINE OPERATING PROFITS AND 

LOSSES. The third quarter of 2007 was 

the sixth consecutive quarter in which 

major passenger airlines, as a group 

reported an operating profit. Five of 

seven network carriers posted profits in 

excess of $250 million; the remaining two 

network carriers also posted substantial 

profits (US Airways posted a profit of 

$243 million and Alaska airlines posted a 

profit of $112 million). United ($635.4 

million) and Northwest ($459.3 

million) posted the largest profits for the 

network carriers. Low-cost carriers 

posted a combined operating profit of 

$357 million. [Figure 22] 

(Note: Financial information for ATA 

Airlines was not available at the time this 

report was prepared). 

$459

$422

$112

$77

$39

$23

$8

-$40

$252

$250

$264

$243

$635

-$50 $50 $150 $250 $350 $450 $550 $650

United

Northw est

Delta

American 

Southwest

Continental

US Airw ays

Alaska

JetBlue

AirTran

Frontier

Spirit

America West

Millions

F

S

igure 22: Selected Network and Low-Cost Carriers 

Operating Profit or Loss

ystem Operations for Quarter Ending 9/30/07 (DOT Data)

$1

$1

$20

$25

$30

$35

$40

3Q 0

$ Billion

0

5

1

1Q02

3Q02

1Q03

3Q03

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

3Q07

s

Operating Revenues Operating Expenses

Figu

Major

Expe

re 21: Revenues vs. Expenses 

 Passenger Carriers Operating Revenues and Operating 

nses 3Qtr 2001 through 3Qtr 2007 (DOT Data)

3Q07 

Revenues 

$34.7 billion

3Q07 

Expenses 

$31.9 billion

Exhibit A. Summary of Airline Industry Metrics
12

ACCUMULATED NET LOSSES AND PROFITS. The accumulation of net losses 

experienced by the network carriers since 2001 began to turn in early 2006 with 

further improvement in the first 9 months of 2007. Aided by continuing strong 

demand, increasing fares and favorable bankruptcy-related accounting credits, the 

network carriers as a group 

posted net profits for the third 

quarter of 2007, only the third 

time in 27 consecutive quarters. 

Accumulated net losses for the 

group narrowed to $37 billion, 

an improvement over the low of 

$58 billion at the end of 2005. 

Low-cost carriers as a group 

posted $1.8 billion in net 

income since the beginning of 

2001, mostly due to a $1.4 

billion favorable accounting 

credit posted by ATA Airlines 

as it exited bankruptcy in the 

first quarter of 2006. 

-$60

-$55

-$50

-$45

-$40

-$35

-$30

-$25

-$20

-$15

-$10

-$5

$0

1 Q

01

2 Q

01

3 Q

01

4 Q

01

1 Q

02

2 Q

02

3 Q

02

4 Q

02

1 Q

03

2 Q

23

3 Q

03

4 Q

03

1 Q

04

2 Q

04

3 Q

04

4 Q

04

1 Q

05

2 Q

05

3 Q

05

4 Q

05

1 Q

06

2 Q

06

3 Q

06

4 Q

06

1Q072Q073Q07

$ Billions

Network Carriers Low-Cost Carriers

Figure 23: Accumulated Net Losses and Gains 

1Qtr 2001 Cumulative Through 3Qtr 2007 (DOT Data)

YE01 YE02 YE03 YE04 YE05

Netw ork Carriers

 -$36 billion (3Q07)

Network Carriers -$58 billion (4Q05)

Low -Cost Carriers 

 +1.8 billion (3Q07)

YE06

[Figure 23]

COST PER AVAILABLE SEAT-MILE (CASM). Despite increasing fuel expenses, 

network carriers continued to keep a cap on domestic operating expenses, showing 

only a 0.5 percent increase in the cost per available seat-mile (CASM) between the 

third quarter of 2001 (11.2 cents) to the third quarter of 2007 (11.7 cents). After 

erential with the low-cost carriers 

from a high of 4.0 cents in the first 

quarter of 2003 to 2.1 cents in the 

third quarter of 2006, the network 

airlines experienced a widening of 

the gap in the third quarter of 2007 

to 2.6 cents. Low-cost 

carriers experienced a 17.7 percent 

increase ce 2001, 

quarter of 2001 to 9.2 cents in the 

same quarter of 2007. [Figure 24] 

successfully managing to reduce the cost diff

 in CASM sin

rising from 8 cents in the third 

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

1Q01

3Q01

1Q02

3Q02

1Q03

3Q03

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

3Q07

Cents

Low -cost Carriers Netw ork Carriers

3Q01 7.8¢ 3 Q07 9.2¢

3Q01 11.7¢ 3 Q07 11.8¢

Figure 24: Cost Per Available Seat Mile (CASM)

1Qtr 2001 through 3Qtr 2007 (DOT Domestic Quarterly Data less 

transport-related expense)

Exhibit A. Summary of Airline Industry Metrics
13

DOMESTIC YIELD. Domestic yield of 12.9 cents per passenger mile for the seven 

major airlines in October 2007 was above the 12.5 cents per passenger mile posted 

in October 2006, but yields were s

of 2006 and 2007, yields have 

averaged 12.8 and 12.9 cents per 

passenger mile, respectively. 

Yields for the same period in 

2000 were 14.5 cents per 

passenger mile. [Figure 25] 

till below 2000 levels. For the first 10 months 

SHORT-HAUL, MEDIUM-HAUL

AND LONG-HAUL FARES. 

ares

re down from 

the $131 paid, during the same 

quarter of 2006. [Chart 26]

Despite several attempts by the

airlines to increase f

between the middle of 2006 

and the middle of 2007, few were ultimately successful. As a result, average 

domestic fares paid by passengers in short-haul, medium-haul, and long-haul 

markets declined in the second quarter of 2007 (down 8 percent, 7 percent, and 3 

percent, respectively), compared to the same period in 2006. Over the same 

period, average fares in medium-haul markets increased a modest 1.6 percent. 

Over the longer term, intense competition and industry restructuring drove fares 

down below the levels paid in 2000, even though fuel costs soared. In the second 

quarter of 2007, fares in longhaul and medium-haul markets 

($267 and $167, 

respectively) were lower than 

2000 levels. Only in the shorthaul market was the second 

quarter 2007 average fare 

relatively unchanged from 2000 

($121 vs. $120). However, 

short-haul fares we

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

Oct-01Apr-02Oct-02Apr-03Oct-03Apr-04Oct-04Apr-05Oct-05Apr-06Oct-06Apr-07Oct-07

Pe ge rcenta

Figure 25: Domestic Yield for Seven Major Airlines

Percent Change in Airline Yield from 2000 (ATA Data)

Oct-07

-14%

$0

$50

$100

$150

$200

$250

2000 2001 2002 2003 2004 2005 2006 2007

Average Fare

Short-Haul Fares Medium-Haul Fares Long-Haul Fares

Figure 26: Average Short-, Medium-, and LongHaul Fares 2Qtr 2000 - 2Qtr 2007 Fares for 300 mi 

1,000 mi, and 1500 mi average distances (DOT Data)

$207

$227

$180 $167

$120 $121

Exhibit A. Summary of Airline Industry Metrics
14

BUSINESS AND LEISURE TRAVEL. After a generally continuous decline over the 

last seven years, the use of busines

quarter of 2006. From a high of 21 

percent in early 2000, use of the 

unrestricted fares, those usually 

booked by business travelers, fell 

to a low of 12 percent in 2002, rose 

slightly to 14 percent in 2003 and 

fell again to the lowest usage rate 

(10 percent), during the winter of 

2005-2006. Thereafter, the percent 

of passengers traveling on business 

fares rose slightly to 11 percent. 

[Figure 27] 

AIRLINE LO

s fares increased slightly since the second 

AD FACTORS

0%

5%

10%

15%

20%

25%

1Q00

3Q00

1Q01

3Q01

1Q02

3Q02

1Q03

3Q03

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

Percentage

Figure 27: Use of Business Fares Percent of All 

Passengers Using Business Fares 1Qtr 2000 through 2Qtr 2007 

(BTS Data)

21%

11%

14%

. Load 

factor is the average percent of 

available seats filled by revenue passengers. For the third quarter of 2007, the 

load factor for the major passenger airlines was 83 percent, about two percentage 

points higher than the third quarter 2006 load factor of 81.1 percent. The 

breakeven load factor or the average percentage of paying passengers needed to 

cover airline costs, dipped slightly from 78.9 percent in the third quarter of 2006 to 

77.8 percent in the third quarter of 2007. [Figure 28] 

20%

40%

60%

80%

100%

3Q01

1Q02

3Q02

1Q03

3Q03

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

3Q07

Percentage

Actual Breakeven

Figure 28: Passenger Load Factors

Actual vs. Breakeven Percentages 3Qtr 2001 through 

3Qtr 2007 (DOT Data)

3Q07 Actual 83%

3Q07 Breakeven 78% 

0%

20%

40%

60%

80%

100%

Southwest

Alaska

JetBlue

US Airways

American

Delta

America West

Continental

United

Northwest

Percentage

Actual Load Factors

Figure 29: Actual Airline Load Factors

Actual Percentages for 3rd Qtr 2007 (DOT Data)

INDIVIDUAL CARRIERS LOAD FACTORS. For the third quarter of 2007, ten major 

carriers averaged a load factor of 83 percent. Continental and United (84.7 

percent each) along with Northwest (87.2 percent) had the highest load factors of 

the ten airlines examined. The average load factor for the ten airlines for the third 

Exhibit A. Summary of Airline Industry Metrics
15

quarter of 2006 (80.9 percent) was approximately two percentage points lower 

than the third quarter of 2007 (83 percent). [Figure 29]

DEBT-TO-INVESTMENT RATIO. The debt-to-investment ratio for the major 

passenger airlines was 61 percent for the third quarter of 2007 versus 105.5 

percent for the third quarter of 2006, a decrease of 43 percent. The debt-toinvestment ratio for major passenger airlines increased steadily over the past 5-6 

years, reaching a peak of 206.8 percent, in the fourth quarter of 2005. However, 

after the fourth quarter of 2005, the ratio dropped significantly and held steady at 

around 105 percent, until dropping to a low of 61 percent, in the third quarter of 

2007. Three airlines had debt-to-investment ratios that were worse than the group 

average: United, (78.2 percent) Continental, (80.1 percent) and American (104 

percent). [Figures 30 and 31] 

50%

100%

150%

200%

3Q01

1Q02

3Q02

1Q03

3Q03

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

3Q07

Percentage

Figure 30: Debt-to-Investment Ratio All Major 

Airlines 3Qtr 2001 through 3rd Qtr 2007 (DOT Data)

 4Q05 207%

 3Q07 61%

20%

46% 48%

59%

2%

80%

104%

78%

44%

0%

20%

40%

60%

80%

100%

120%

America West

Southwest

US Airways

Alaska

Northwest

Alaska

United

Continental

American

Percentage

Figure 31: Debt-to-Investment Ratio by Airline

Quarter Ending 9/30/07 (DOT data)

FUEL COSTS. Average annual fuel costs for domestic airlines rose to $1.97 per 

gallon through the first 9 months of 2007. The peak price per gallon came in 

September 2007, when prices reached $2.11 per gallon. This represents a 

270 percent increase in price per gallon since December 2001. According to the 

ATA quarterly airline cost index, fuel has superseded labor as the industry's top 

cost and now constitutes 20 percent to 30 percent of industry operating expenses. 

Exhibit A. Summary of Airline Industry Metrics
16

While prices rose steadily from 2001 to present, a wide range of issues outside the 

control of airlines, such as geopolitical insecurity, and a lack of refining capacity 

affect fuel prices, making it 

difficult to predict how prices will 

move in the future. [Figure 32] 

AIRPORT AND AIRWAY TRUST 

FUND. The Airport and Airway 

Trust Fund, which is funded 

primarily by a set of excise taxes on 

commercial airline tickets, pays 

most of the Federal Aviation 

Administration’s (FAA) expenses.

 Trust Fund revenues increased 

steadily over the last several years 

after declining between Fiscal Year (FY) 2001 and FY 2003. At the end of FY 

2007 aviation excise taxes supporting FAA’s programs expired. FAA programs 

are presently operating under a short-term extension. [Figure 33] 

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

Sep-01

Jan-02

May-02

Sep-02

Jan-03

May-03

Sep-03

Jan-04

May-04

Sep-04

Jan-05

May-05

Sep-05

Jan-06

May-06

Sep-06

Jan-07

May-07

Sep-07

Average cost $ per gallon

Figure 32: Cost Per Gallon Domestic Jet Fuel (ATA 

Data)

Sept 

'07

$2.11

Dec '01

$0..57

$9.9 $9.3

$13.6 $13.9 $13.9

$9.7

$10.7 $11.1

$11.9 $12.6

$13.3

$14.2 $14.1 $14.3

$4.8

$3.9

$2.4 $1.9 $1.8 $2.0

$3.1

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

02 03 04 05 06 07 08 est

$ Billions

Trust Fund Revenues FAA Budget 08 Request

Uncommitted Balance

Figure 33: Airport & Airway Trust Fund 

FAA Budget and Funding FY 2002-FY 2008 (FAA Data) 

Exhibit A. Summary of Airline Industry Metrics
17

AIR SERVICE AT SMALL AIRPORTS 

CHANGES IN AIR SERVICE. Following the economic downturn in late 2000 and 

the after-effect of September 11, 

2001, service (as measured by 

scheduled flights and seats) 

declined at airports of all sizes. 

Service began to return in 2003 

and scheduled flights at smallhub, medium-hub, and large-hub 

airports increased. The only 

category of airports where 

service has not rebounded is at 

non-hub airports, which are the 

Nation's smallest commercial 

airports. Scheduled flights at 

non-hub airports in August 2007 

decreased 27 percent since 2000. 

[Figure 34]

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

2001 2002 2003 2004 2005 2006 2007

Percent Change

Non-hub Small Medium Large

Figure 34: Departures at Hub Types 

Percent Change in Scheduled Domestic Flights August 2001- August 

2007 Compared to August 2000 (FAA Data)

Nonhub airports

August '07 vs '00 -27% 

ACCESS TO LARGE AIRPORTS. The number of seats scheduled into large hub 

airports from markets of all sizes have declined since 2000. The decreases 

experienced by the various hub sizes ranged from 6 percent to 10 percent. Flights 

into large airports from non-hubs were down 21 percent between August 2000 and 

August 2007, although seats were 

down only 8 percent, as airlines 

substituted larger aircraft for 

smaller aircraft. The number of 

scheduled flights to large hubs 

from other large hubs decreased 

by 6 percent from August 2000 to 

August 2007. In contrast, flights 

from medium hubs into large 

airports increased 3 percent and 

flights from small hubs to large 

hubs changed little. [Figure 35]

-6%

3%

0%

-21%

-10%

-6%

-8% -8%

-25%

-20%

-15%

-10%

-5%

0%

5%

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

Large

Percent Change

Flights Seats

Figure 35: Access to Large Airports 

Percent Change in Number of Scheduled Flights and Available Seats 

August 2007 vs. August 2000

Exhibit A. Summary of Airline Industry Metrics
18

NON-HUB AIRPORT SERVICE LOSSES BY REGION. In August 2007, scheduled 

seats at non-hub airports in the Midwest and Northwest regions were lower by 

28 percent and 26 percent, respectively, compared to August 2000. Over the same 

time, scheduled seats declined by 17 percent in the South and 12 percent in the 

West. However, scheduled seats in all four regions have increased between 

August 2006 and August 2007. [Figure 36] 

National Average -19%

West

-12%

South

-17%

Northeast

-26%

Figure 36: Regional Differences in Service at NonHubs Percent Change in Available Seats at Non-Hub Airports 

August 2007 vs. August 2000 (FAA Data)

Midwest

-28%

Note: Excludes U.S. 

Possessions and Territories

ESSENTIAL AIR SERVICE. In recent years, a growing number of communities 

have received subsidies under the Essential Air Service (EAS) program. EAS 

provided funds for subsidies to air carriers to serve 145 communities in FY 2007, 

up from 115 communities in FY 2001. Similarly, funding has increased, from 

$50 million in FY 2001 to $109.4 million in FY 2007. For FY 2008, the 

Administration requested $50 million for the program. [Figure 37]

$0

$20

$40

$60

$80

$100

$120

$140

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08*

Appropriations

(Millions)

0

20

40

60

80

100

120

140

160

180

EAS Communities

Appropriations

Subsidized Communities

Figure 37: Essential Air Service

Funding and Subsidized Communities FY 2001 - FY 2008 

(DOT Data)

*President's proposed FY '08 

budget $50 million

?

Exhibit A. Summary of Airline Industry Metrics
19

EXHIBIT B. SCOPE AND METHODOLOGY 

Data represented graphically in the report were collected from the following 

primary sources: the Air Transport Association (ATA), the Federal Aviation 

Administration (FAA), the Bureau of Transportation Statistics (BTS), and the 

Office of Aviation Analyses (OAA). The ATA is a trade association of U.S. 

certificated air carriers. FAA, BTS, and OAA are organizations within the 

Department of Transportation. These sources were used to perform the analyses 

detailed below. 

We note that we did not systematically audit or validate the data contained in any 

of the databases. However, we conducted trend analyses and sporadic checks of 

the data to assess reasonableness and comprehensiveness. When our judgmental 

sampling identified anomalies or apparent limitations in the data, we held 

discussions with managers responsible for maintaining the databases to understand 

and attempt to resolve the inconsistencies. Consequently, we did not perform 

sufficient tests to draw conclusions or form an opinion on the completeness or 

accuracy of the data sources. 

We met periodically with staff from ATA, FAA, BTS, and OAA to discuss data 

issues and obtain feedback on modifications we made to existing data in order to 

more accurately represent industry trends. We used a definition of a regional jet 

based on size, operational, and ownership criteria that differ from those used by 

other industry and government entities. We sought feedback on the definition and 

adjusted data sets to reflect our revised definition. In addition, we classified our 

set of low-cost carriers to include America West Airlines, whose costs per 

available seat mile are consistent with other low-cost carriers. In some of our 

prior reports on industry conditions, we included America West Airlines as a 

network carrier. 

A. Analyses Performed With ATA Data

Financial and statistical analyses of history, trends, status, and performance of fuel 

expenses and unit revenues, utilized financial, traffic, and operational statistics 

obtained from ATA sources. 

1. ATA Monthly Passenger Yield Report. A collection of current and historic 

airline yield statistics (passenger revenue per revenue passenger-mile). Scope: 

selected member airlines of the ATA, 2000 through October 2007.6

 6

 Data for “Domestic Yield for Seven Major Airlines” (Figure 25) includes the following major network air carriers: 

Alaska Airlines, American Airlines, Continental Airlines, Delta Airlines, Northwest Airlines, United Airlines, and 

US Airways (includes America West). 

Exhibit B. Scope and Methodology
20

2. ATA Monthly Fuel Report. A publication of monthly airline fuel 

consumption and cost data collected and reported by BTS. Scope: all U.S. 

certificated airlines required to report fuel cost and consumption reports (DOT 

Form 41, Schedule P-12), 2001 through September 2007.7

B. Analyses Performed With BTS Data

Financial and statistical analyses of history, trends, status and performance of 

financial condition, net profits and losses, debt and investment, load factors, and 

business and leisure travel characteristics, utilized financial, traffic, operational 

statistics, and passenger ticket survey information obtained from BTS sources. 

1. Air Carrier Financial Statistics. A compilation of financial reports 

submitted by air carriers as required under Title 14 Code of Federal 

Regulations (CFR) Part 241 (Form 41) and by hardcopy in the public 

reference room of the Office of Airline Information. Scope: all certificated 

U.S. air carriers, 2001 through the quarter ended September 30, 2007. 

2. Air Carrier Traffic Statistics. A compilation of traffic and capacity reports 

submitted by air carriers as required under 14 CFR Part 241 (Form 41). 

Scope: all certificated U.S. air carriers (passenger and cargo), commuter air 

carriers, and foreign air carriers operating to and from the United States, 

2000 through September 2007. 

3. Origin and Destination Survey of Passenger Travel (O&D Survey). A 

compilation of surveyed ticket information submitted quarterly as required 

under 14 CFR Part 241 (Form 41). Scope: 10 percent sample of tickets 

used by passengers, 2000 through the second quarter 2007. 

C. Analyses Performed With DOT-OAA Data

Financial and statistical analyses of history, trends, status and performance of 

airline revenues, expenses, profits, traffic, capacity and the Essential Air Service 

Program utilized financial, traffic and operational statistics obtained from DOT 

sources.

1. Airlines Quarterly Financial Review. A quarterly report analyzing the 

financial and operating performance and condition of the major airlines in 

the U.S. prepared using financial and traffic statistics reported to BTS by 

 7

 Data for “Cost per Gallon Domestic Jet Fuel” (Figure 32) include all major, national, and large regional U.S. 

airlines that report to DOT. 

Exhibit B. Scope and Methodology
21

the airlines. Scope: 18 major air carriers (18 passenger and 2 all-cargo 

carriers), 2001 through the third quarter 2007. 

2. Essential Air Service Program (EAS). Information on EAS budgets and 

number of communities served was supplied to the OIG by EAS program 

administrators. Scope: budget and program activity for Fiscal Years 2001 

through 2007 as well as the Administration’s budget proposal for Fiscal 

Year 2008 and figures for full House and Senate committee appropriations 

for EAS. 

3. Domestic Airline Fares Consumer Report. Table 6 of this quarterly report 

supplies the average air fare paid by passengers traveling in distinct 

airport-pair markets with an average of 10 or more daily passengers. This 

report was prepared using the DOT domestic edition of the Origin and 

Destination Survey of Passenger Travel (O&D Survey). Scope: A 10 

percent sample of tickets of passengers traveling on domestic flights within 

the 48 states, quarterly from 2000 through the second quarter 2007. 

D. Analyses Performed With FAA Data

Air Traffic Control (ATC) delay and operational statistics as well as airline flight 

schedule data obtained from FAA sources were used in statistical analyses of 

history, trends, status and performance of air traffic control management and 

delays; airline scheduled capacity, operations and market share; aircraft type 

usage; and the Aviation Airport and Airway Trust Fund. 

1. Flight Schedule Data System (FSDS). A database of published airline flight 

schedules. Scope: nationwide, 2000 through August 2007. 

2. Aviation System Performance Metrics (ASPM). A database of FAA air 

traffic control performance measures including delays, cancellations, 

operations, and causes for delays. Scope: 55 major airports across the 

country and all air route traffic control centers, 2000 through September 

2007. 

3. Operations Net (OPSNET) – Center. A database of air route traffic control 

center aircraft movement operations handled by the various air route traffic 

control centers. Scope: 22 air route traffic control centers, 2000 through 

September 2007. 

4. Aviation Airport and Airway Trust Fund The OIG obtained actual and 

estimated revenues for the Trust Fund from the FAA. Scope: actual 

revenues and uncommitted Trust Fund balances for Fiscal Years 2001 

Exhibit B. Scope and Methodology
22

through and 2006; estimates of revenue and uncommitted Trust Fund 

balances for Fiscal Year 2006 and 2007. 

Terms and Definitions for the Current Report

Business Travel – Business travel is measured by the percent of ticket coupons in 

the Origin and Destination Survey of Passenger Travel with fare codes that are 

typically used in business travel compared to all ticket coupons used. Fare codes 

typically used for business travel include restricted and unrestricted first and 

business class travel and unrestricted coach class travel. The count of business 

fare code ticket coupons in the O&D Survey excludes restricted “first class” fare 

coded ticket coupons from the business category for carriers with single class 

service. 

Hub Airport – A ranking designation of U.S. airports by the FAA based upon the 

airport’s percentage share of total passenger enplanements at all U.S. airports. 

The FAA categorizes airports based on the following criteria: 

 

Percentage of Annual Passenger Enplanements in the U.S. by Hub Type: 

Large Hub 1.0% or more of total enplanements 

 Medium Hub at least 0.25%, but less than 1% 

Small Hub at least 0.05%, but less than 0.25% 

 Non-hub at least 2,500, but less than 0.05% 

Large Jet – For the purposes of the Aviation Industry Performance report, large 

jets are all commercially operated jet transport aircraft other than those defined as 

regional jets. 

Low-cost Carrier – For the purposes of the Aviation Industry Performance report, 

the category low-cost carrier includes: AirTran, America West, American Trans 

Air (ATA), 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 2002 

and November 2002, respectively; Pan American ceased operations in 1998. 

Major passenger airline – Except where noted, for the Aviation Industry 

Performance report, the category major passenger airline includes: AirTran 

Airways, Alaska Airlines, America West Airlines, American Airlines, American 

Eagle Airlines, ATA, Inc., Atlantic Southeast Airlines, Comair, Continental 

Airlines, Delta Air Lines, ExpressJet, JetBlue, Northwest Airlines, SkyWest, 

Southwest Airlines, United Airlines, and US Airways. AirTran, Atlantic 

Southeast, and Skywest were added to the list in the first quarter of 2006. 

Exhibit B. Scope and Methodology
23

Network airline – For the purposes of the Aviation Industry Performance report, 

the category network airline includes: Alaska Airlines, American Airlines, 

Continental Airlines, Delta Air Lines, Northwest Airlines, United Airlines, and US 

Airways. For the purposes of consistency over time, the financial and operating 

statistics for the former Trans World Airlines have been merged with those of the 

acquirer American Airlines. 

Other airlines – Except where noted, for the purposes of Aviation Industry 

Performance report, the category other airlines includes all scheduled U.S. airlines 

not included in the network and low-cost categories (mostly smaller scheduled 

regional, commuter, and national airlines which are affiliated with the major 

network carriers). 

Regional carrier – An entity whose fleet is principally comprised of aircraft 

configured with fewer than 100 seats, operated within a limited geographic scope 

(may have multiple regions, though not interlinked across the country under its 

own single brand), principally serving hub-and-spoke networks, and conducting 

most of its operations under the affiliation(s) of larger branded airlines (network 

carriers). For the purposes of this report, we also consider internal mainline 

operating units that are principally involved in regional operations as regional 

carriers.

Regional Jet (RJ) – All turbofan jet-powered aircraft configured to seat 77 or 

fewer passengers, and operated by either a regional or network carrier. All 

turbofan jet-powered aircraft configured to seat between 78 and 100 passengers 

and operated by regional carriers. 

Regions – For purposes of the airline performance report, the Nation was 

delineated into four regions composed of states and the District of Columbia: 

Northeast: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, 

Connecticut, New York, New Jersey, and Pennsylvania; Midwest: Ohio, Indiana, 

Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, North Dakota, South 

Dakota, Nebraska, and Kansas; South Region: Delaware, Maryland, Virginia, 

West Virginia, North Carolina, South Carolina, Georgia, Florida, Kentucky, 

Tennessee, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma, Texas and 

District of Columbia; West: Montana, Idaho, Wyoming, Colorado, New Mexico, 

Arizona, Utah, Nevada, Washington, Oregon, California, Alaska, and Hawaii. 

Exhibit B. Scope and Methodology
24 

EXHIBIT C. MAJOR CONTRIBUTORS TO THIS 

REPORT 

The following individuals contributed to this report. 

Name Title 

Mitch Behm Program Director 

Marshall Jackson Project Manager 

Ralph W. Morris Economist 

Andrew Sourlis Analyst 

Stephen G. Smith Transportation Analyst 

Darlisa Crawford Writer-Editor 

Andrea Nossaman Writer-Editor 

Exhibit C. Major Contributors to This Report
The following pages contain textual versions of the graphs and charts contained in this 

document. These pages were not a part of the original document but have been added 

here to accommodate assistive technology. 
Aviation Industry Performance 

A Review of Summer 2007 Aviation System Performance 

Section 508 Compliant Presentation 

Figure 1: Actual Flight Operations 

Percent Change from 2000 in Air Route Traffic Control Operations (FAA Data) 

Month 

2001 

Percent 

Change in 

Operations 

2002 

Percent 

Change in 

Operations 

2003 

Percent 

Change in 

Operations 

2004 

Percent 

Change in 

Operations 

2005 

Percent 

Change in 

Operations 

Percent 

2006 

Change in 

Operations 

Percent 

2007 

Change in 

Operations 

January 5% -3% 0% 2% 5% 3% 5% 

March -4% -8% -10% 0% 0% -4% -3% 

March -2% -7% -7% 1% 4% 0% 1% 

April 0% -3% -5% 3% 4% 1% 2% 

May -1% -4% -7% -1% 3% 0% 1% 

June -3% -4% -6% 1% 4% 0% 2% 

July 1% -1% -2% 3% 4% 1% 3% 

August 0% -4% -6% 1% 2% 0% 1% 

September -16% -5% -5% 0% 2% -1% -1% 

October -8% -4% -3% 1% -2% -1% 

November -8% -7% -4% 2% 0% 1% 

December -5% -1% 3% 7% 5% 6% 

Note: September 2001 Actual Flight Operations Down 16 Percent 

Note: All percentages are rounded 

Figure 2: Number of Flights with Delayed Arrivals 

(FAA Data-All Airlines, 55 Major Airports) 

Month 

2000 

Arrival 

Delays 

2006 

Arrival 

Delays 

2007 

Arrival 

Delays 

January 158,982 152,330 183,227 

February 152,326 150,099 192,067 

March 154,507 168,493 197,887 

April 154,472 149,272 169,517 
MAY 160,781 

152,815 162,228 

June 200,301 182,383 210,521 

July 183,866 181,964 209,101 

August 195,624 174,675 210,006 

September 150,585 160,421 129,929 

October 167,005 186,872 

November 179,700 165,951 

December 235,929 196,409 

Note: Arrival delays for summer months 2007 are up 15% versus summer months in 

2006. 

Figure 3: Cancellations 

(FAA Data-All major airlines, 55 major airports) 

Month 2000 

Cancellations 

2006 

Cancellations

2007 

Cancellations 

JANUARY 21,170 

12,219 16,105 

February 13,074 13,371 26,768 

March 8,859 9,424 18,697 

April 10,050 7,804 12,830 

May 14,474 8,922 8,473 

June 16,214 12,709 18,959 

July 13,458 13,151 15,152 

August 13,284 11,536 13,799 

September 16,507 11,694 8,151 

October 17,943 12,765 

November 17,511 12,429 

December 42,675 19,507 

Note: Cancellations for summer months 2007 are up 28% versus summer months in 

2006. 

Note: Cancellations for February and March 2007 are up 100% and 98% versus 

February and March 2006. 

Figure 4: Percent of Flights Arriving Late 

(FAA All major airlines, 55 major airports) 
Month 2000 2006 2007 

JANUARY 25% 

23% 27% 

February 24% 25% 31% 

March 22% 24% 28% 

April 23% 22% 25% 

May 23% 22% 23% 

June 30% 27% 31% 

July 27% 26% 30% 

August 28% 24% 28% 

September 23% 24% 20% 

October 24% 27% 

November 27% 25% 

December 36% 29% 

Note: Percent of Flights Arriving Late during summer months 2007 are up 14% 

versus summer months 2006. 

Note: All Percentages are rounded 

Figure 5: Length of Arrival Delays 

(FAA Data All airlines, 55 major airports) 

Month 2000 

(In Minutes) 

2006 

(In Minutes) 

2007 

(In Minutes) 

JANUARY 49 

52 52 

February 49 50 56 

March 48 51 57 

April 49 50 54 

May 53 51 52 

June 55 58 62 

July 54 58 59 

August 52 53 58 

September 49 54 51 

October 48 54 

November 48 52 

December 55 55 
Note: Arrivals Delayed 60 Minutes during summer months 2007 versus 56 minutes 

during summer months 2006. 

Note: All numbers are rounded 
Figure 6: Most Significant Changes in Arrival Delays by Airport 

Percent Change in Arrival Delays for Summer 2007 versus 2006 (FAA Data) 

Airport Percent Change 

Dallas/Ft. Worth 57% 

Ft. Lauderdale 46% 

Dallas Love 43% 

Newark -3% 

San Juan -5% 

Louisville -10% 

Figure 7: Passenger Enplanements 2000-2006 

Scheduled Service System-Wide (DOT Data) 

Year 

Number of 

Enplanements 

(millions) 

2000 698.9 

2001 652.9 

2002 641.0 

2003 647.5 

2004 703.7 

2005 738.6 

2006 744.6 

Figure 8: Domestic Revenue Passenger-Miles and Available Seat-Miles from 2000-

2007 (BTS Data) 

Quarter Year 

Traffic (Revenue 

Passenger-Miles) in 

billions 

Capacity (Available 

Seat-Miles) in billions 

First Quarter 2000 123 184 

Second Quarter 2000 139 186 

Third Quarter 2000 140 193 

Fourth Quarter 2000 129 189 

First Quarter 2001 125 187 

Second Quarter 2001 138 193 

Third Quarter 2001 131 188 

Fourth Quarter 2001 108 165 

First Quarter 2002 114 168 
Second Quarter 2002 129 180 

Third Quarter 2002 134 188 

Fourth Quarter 2002 122 178 

First Quarter 2003 118 173 

Second Quarter 2003 130 175 

Third Quarter 2003 138 183 

Fourth Quarter 2003 129 182 

First Quarter 2004 130 186 

Second Quarter 2004 147 192 

Third Quarter 2004 151 196 

Fourth Quarter 2004 140 192 

First Quarter 2005 139 189 

Second Quarter 2005 155 197 

Third Quarter 2005 158 200 

Fourth Quarter 2005 143 189 

First Quarter 2006 141 184 

Second Quarter 2006 156 191 

Third Quarter 2006 156 196 

Fourth Quarter 2006 146 190 

First Quarter 2007 143 188 

Second Quarter 2007 161 195 

Third Quarter 2007 164 199 

Note: Capacity trend line increasing steadily from first quarter 2000 to third quarter 

2007. The traffic trend line is increasing at a more rapid rate for this same time 

period. 

Note: Third quarter of 2000, the load factor was 73 percent. The load factor in the 

third quarter of 2007 was 82 percent. 

Note: All numbers are rounded 

Figure 9: Domestic and International Revenue Passenger-Miles 

From 2000-2007 (BTS Data) 

Quarter Year 

Domestic Traffic 

(Revenue PassengerMiles) in billions 

International Traffic 

(Revenue PassengerMiles) in billions 

First Quarter 2000 123 95 

Second Quarter 2000 139 115 

Third Quarter 2000 140 126 

Fourth Quarter 2000 129 102 

First Quarter 2001 125 98 

Second Quarter 2001 138 112 
Third Quarter 2001 131 111 

Fourth Quarter 2001 108 72 

First Quarter 2002 114 83 

Second Quarter 2002 129 95 

Third Quarter 2002 134 104 

Fourth Quarter 2002 122 90 

First Quarter 2003 118 85 

Second Quarter 2003 130 85 

Third Quarter 2003 138 105 

Fourth Quarter 2003 129 94 

First Quarter 2004 130 94 

Second Quarter 2004 147 107 

Third Quarter 2004 151 117 

Fourth Quarter 2004 140 100 

First Quarter 2005 139 102 

Second Quarter 2005 155 115 

Third Quarter 2005 158 125 

Fourth Quarter 2005 143 104 

First Quarter 2006 141 103 

Second Quarter 2006 156 121 

Third Quarter 2006 156 128 

Fourth Quarter 2006 146 110 

First Quarter 2007 143 107 

Second Quarter 2007 161 125 

Third Quarter 2007 164 134 

Note: The trend line for international traffic is increasing very slightly from first 

quarter 2000 to first quarter 2006. The traffic trend line for domestic is increasing at a 

more rapid rate for this same time period. 

Note: All numbers are rounded 

Figure 10: International Passenger Traffic Quarterly Revenue Passenger-Miles From 

2000 to 2007 BTS Data 

Quarter Year Latin Traffic 

(Revenue 

Passenger-Miles) 

in billions 

Atlantic Traffic 

(Revenue 

Passenger-Miles) 

in billions 

Pacific Traffic 

(Revenue 

Passenger-Miles) 

in billions 

First Quarter 2000 18 45 31 

Second Quarter 2000 17 63 35 

Third Quarter 2000 19 69 38 
Fourth Quarter 2000 16 52 34 

First Quarter 2001 19 46 33 

Second Quarter 2001 17 61 34 

Third Quarter 2001 16 60 34 

Fourth Quarter 2001 13 37 22 

First Quarter 2002 16 39 29 

Second Quarter 2002 15 50 30 

Third Quarter 2002 16 56 33 

Fourth Quarter 2002 14 46 30 

First Quarter 2003 17 39 29 

Second Quarter 2003 15 49 21 

Third Quarter 2003 17 58 30 

Fourth Quarter 2003 15 48 30 

First Quarter 2004 19 44 31 

Second Quarter 2004 17 57 33 

Third Quarter 2004 19 63 35 

Fourth Quarter 2004 17 51 32 

First Quarter 2005 21 47 34 

Second Quarter 2005 19 60 36 

Third Quarter 2005 20 67 38 

Fourth Quarter 2005 17 52 35 

First Quarter 2006 22 46 35 

Second Quarter 2006 20 63 37 

Third Quarter 2006 20 69 39 

Fourth Quarter 2006 16 58 36 

First Quarter 2007 22 48 36 

Second Quarter 2007 21 66 38 

Third Quarter 2007 22 74 38 

Note: The September 11th impact had a sharp downward affect on all three areas 

(Latin, Atlantic and Pacific) in the fourth quarter of 2001. 

Note: The SARS epidemic had a negative impact in second quarter, 2003 RPMs for 

the Pacific region. 

Note: All numbers are rounded 

Figure 11: Nine Major Airlines Reported Arrivals 

Percent Change in Actual Arrivals by Airline August 2007 versus August 2000 (FAA 

Data 55 major airports) 

Airline Percentage 

Change 

Southwest 30% 
Alaska 15% 

America West -6% 

Northwest -25% 

Continental -7% 

Delta -37% 

American -33% 

US Airways -54% 

United -30% 

Note: All percentages are rounded 

Figure 12: Regional Differences in Capacity in All Airports 

Percent Change in Available Seats at All Airports August 2007 versus August 2000 

(FAA Data) 

Region 

Percent 

Change in 

Available 

Seats 

Northeast (includes Connecticut, Maine, 

Massachusetts, New Hampshire, New Jersey, New 

York, Pennsylvania, Rhode Island, Vermont) 

-17% 

Midwest (includes Illinois, Indiana, Iowa, Kansas, 

Michigan, Minnesota, Missouri, Nebraska, North 

Dakota, Ohio, South Dakota, Wisconsin) 

-22% 

West (includes Alaska, Arizona, California, Colorado, 

Hawaii, Idaho, Montana, Nevada, New Mexico, 

Oregon, Utah, Washington, Wyoming) 

-5% 

South (includes Alabama, Arkansas, Delaware, 

Florida, Georgia, Kentucky, Louisiana, Maryland, 

Mississippi, North Carolina, Oklahoma, South 

Carolina, Tennessee, Texas, Virginia, West Virginia) 

-5% 

National Average -11% 

Note: All percentages are rounded. 

Figure 13: Change in Capacity at Large Airports. Percent Change in Scheduled 

Flights and Available Seats at the 31 Largest Airports August 2007 versus August 

2000 (FAA Data). 
 Airports 

Percent Change in 

Scheduled Flights 

8/07 vs. 8/00 

Percent Change in 

Scheduled Seats 

8/07 vs. 8/00 

Kennedy 23% 46%

Fort Lauderdale 18% 28%

Las Vegas 27% 24%

Orlando 7% 19%

San Diego 15% 14%

Denver 22% 13%

Charlotte 16% 7%

Tampa -9% 5%

Baltimore -5% 3%

Houston 23% 3%

Salt Lake City 30% 1%

Philadelphia 5% -1%

Atlanta 13% -4%

Seattle -18% -4%

Phoenix -5% -4%

Reagan National 5% -5%

Dulles -29% -9%

LaGuardia 5% -11%

Honolulu -5% -12%

Detroit -7% -13%

Chicago O'Hare 1% -14%

Minneapolis -13% -16%

Dallas-Fort Worth -18% -16%

Newark -7% -18%

Miami -23% -20%

Los Angeles -18% -20%

Boston -25% -22%

San Francisco -19% -24%

Cincinnati -22% -41%

St. Louis -48% -56%

Pittsburgh -58% -60%

Note: All percentages are rounded 

Figure 14: Length of Domestic Flights 

Percent Change in Scheduled Flights by Length of Flight 
August 2007 versus August 2000 (FAA Data) 

Range in Miles Percent Change 

in Flights 

0 to 249 miles -34% 

250 to 499 miles -9% 

500 to 999 miles 22% 

1,000 miles or more 14% 

Figure 15: Short-Haul Flights: Seats by Type of Airline 

Available Seats on Flights Less Than 250 Miles 

August 2007 versus August 2000 (FAA Data) 

Carrier Type August 

2000 

August 

2007 

Network 6.2 million 2.8 million 

Regionals 

And Others 9.8 million 7.4 million 

Low-Cost 2.4 million 2.2 million 

Figure 16: Domestic and International Air Cargo Traffic. Quarterly Revenue TonMiles From First Quarter of 2003 trough Third Quarter of 2007. BTS Data. 

Quarter Year Domestic Traffic 

(Revenue Ton-Miles) 

in billions 

International Traffic 

(Revenue Ton-Miles) 

in billions 

First Quarter 2003 4 8 

Second Quarter 2003 5 8 

Third Quarter 2003 5 8 

Fourth Quarter 2003 5 9 

First Quarter 2004 5 8 

Second Quarter 2004 5 9 

Third Quarter 2004 5 9 

Fourth Quarter 2004 6 10 

First Quarter 2005 5 9 

Second Quarter 2005 5 9 

Third Quarter 2005 5 9 

Fourth Quarter 2005 6 10 
First Quarter 2006 5 9 

Second Quarter 2006 5 10 

Third Quarter 2006 5 10 

Fourth Quarter 2006 6 11 

First Quarter 2007 5 10 

Second Quarter 2007 5 10 

Third Quarter 2007 5 10 

Note: All numbers are rounded 

Figure 17: Domestic Market Share by Seller Carrier Group 

Airline Market Share of Scheduled Available Seats 

August 2000, August 2006, and August 2007 (FAA Data) 

Carrier Type August 

2000 

August 

2006 

August

2007 

Network 72% 68% 66% 

Low-Cost 20% 28% 29% 

Others 8% 4% 5% 

Note: All percentages are rounded. 

Figure 18: Share of Low-Cost Carrier Service Growth 

Airline Share of Service by Scheduled Available Seats, August 2007 (FAA Data) 

Low-Cost Airline Service Growth 

Percentage 

Southwest 38% 

JetBlue 27% 

AirTran 22% 

Frontier 10% 

Spirit 3% 

Note: All percentages are rounded. 
Figure 19: Market Share of Low Cost Carrier Service 

Airline Share of Growth by Scheduled Available Seats, August 2000 to August 2007 

(FAA Data) 

Low- Cost Airline Market Share 

Percentages 

Southwest 58% 

JetBlue 10% 

AirTran 12% 

Frontier 5% 

America West 10% 

Spirit 2% 

Sun Country 1% 

American Trans Air 1% 

Note: All percentages are rounded. 

Figure 20: Market Share by Aircraft Type 

Percent Share of Scheduled Flights by Type of Aircraft August 2000, 2006, and 2007 

(FAA Data) 

Aircraft Type August 

2000 

August 

2006 

August 

2007 

Large Jets 56% 49% 49% 

Regional Jets 10% 33% 33% 

Non-Jet 34% 18% 17% 

Note: All percentages are rounded. 

Note: Numbers are rounded 

Figure 21: Revenues versus Expenses 

Major Passenger Carriers Operating Revenues and Operating Expenses First 

Quarter 2001 through Third Quarter 2007 (DOT Data) 

Quarter 

Operating 

Revenues 

In Billions 

Operating 

Expenses 

In Billions 

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 $18.8 $21.7 

First Quarter 2003 $19.2 $22.2 

Second Quarter 2003 $20.3 $21.0 

Third Quarter 2003 $21.9 $21.3 

Fourth Quarter 2003 $21.0 $21.7 

First Quarter 2004 $22.0 $23.0 

Second Quarter 2004 $24.7 $23.3 

Third Quarter 2004 $24.9 $24.3 

Fourth Quarter 2004 $23.4 $25.5 

First Quarter 2005 $23.9 $25.4 

Second Quarter 2005 $27.2 $26.7 

Third Quarter 2005 $28.1 $28.0 

Fourth Quarter 2005 $26.3 $27.7 

First Quarter 2006 $27.6 $28.0 

Second Quarter 2006 $33.2 $29.6 

Third Quarter 2006 $32.1 $30.4 

Fourth Quarter 2006 $29.3 $28.6 

First Quarter 2007 $28.9 $28.1 

Second Quarter 2007 $33.2 $30.2 

Third Quarter 2007 $34.7 $31.9 

Note: All amounts are rounded 

Figure 22: Selected Network and Low-Cost Airlines Operating Profit or Loss 

System Operations for Quarter Ending September 30, 2007 (DOT Data) 

Airline Profit or Loss 

(In Millions) 

Southwest $251.5 

America West $-40.4 

JetBlue $76.8 

Frontier $22.8 

Spirit $7.7 

Air Tran $38.5 

American $264.6 

Alaska $111.8 

US Airways $243.1 
Continental $250.1 

United $635.4 

Northwest $459.3 

Delta $421.8 

Figure 23: Accumulated Net Losses and Gains 

First Quarter 2001 Cumulatively through Third Quarter 2007 

(DOT Data) 

Quarter Year Network 

Carriers 

Cumulative 

Sum 

Dollars in 

Billions 

Low-Cost 

Carriers 

Cumulative Sum

Dollars in 

Billions 

First Quarter 2001 -$1 $0.1 

Second Quarter 2001 -$1.8 $0.2 

Third Quarter 2001 -$4.2 $0.3 

Fourth Quarter 2001 -$7.4 $0.2 

First Quarter 2002 -$10.4 -$0.2 

Second Quarter 2002 -$11.9 -$0.2 

Third Quarter 2002 -$14.5 -$0.2 

Fourth Quarter 2002 -$18.5 -$0.3 

First Quarter 2003 -$20.4 -$0.3 

Second Quarter 2003 -$20.7 $0.2 

Third Quarter 2003 -$21.2 $0.3 

Fourth Quarter 2003 -$21.8 $0.4 

First Quarter 2004 -$23.4 $0.4 

Second Quarter 2004 -$25.8 $0.5 

Third Quarter 2004 -$27.2 $0.5 

Fourth Quarter 2004 -$29.7 -$0.1 

First Quarter 2005 -$32.8 -$0.3 

Second Quarter 2005 $34.8 -$0.2 

Third Quarter 2005 $37.5 -$0.2 

Fourth Quarter 2005 $57.6 -$0.5 

First Quarter 2006 $38.5 $1.0 

Second Quarter 2006 $40.0 $1.4 

Third Quarter 2006 $40.7 $1.3 

Fourth Quarter 2006 $42.9 $1.2 

First Quarter 2007 $43.3 $1.3 

Second Quarter 2007 $38.0 $1.6 

Third Quarter 2007 $36.5 $1.8 
Note: Fourth Quarter 2005 - Since the first quarter of 2001 Network Carriers Have 

Accumulated Net Losses of 58 billion Dollars 

Note: Third Quarter 2007 - Since the first quarter of 2001 Network Carriers Have 

Accumulated Net Losses of 37 billion Dollars 

Note: Third Quarter 2007 - Since the first quarter of 2001 Low-Cost Carriers Have 

Accumulated $1.8 billion Dollars in Net Income. 

Note: Numbers are rounded 

Figure 24: Cost per Available Seat Mile (CASM) 

First Quarter 2001 through Third Quarter 2007 

(DOT Domestic Quarterly Data) 

Quarter Year Network Carriers Low-Cost Carriers 

First Quarter 2001 11.4¢ 8.0¢ 

Second Quarter 2001 11.2¢ 8.0¢ 

Third Quarter 2001 11.7¢ 7.8¢ 

Fourth Quarter 2001 11.7¢ 8.1¢ 

First Quarter 2002 11.2¢ 7.6¢ 

Second Quarter 2002 10.9¢ 7.6¢ 

Third Quarter 2002 10.7¢ 7.4¢ 

Fourth Quarter 2002 11.1¢ 7.5¢ 

First Quarter 2003 11.5¢ 7.6¢ 

Second Quarter 2003 10.8¢ 7.5¢ 

Third Quarter 2003 10.2¢ 7.3 ¢ 

Fourth Quarter 2003 10.7¢ 7.5¢ 

First Quarter 2004 10.7¢ 7.6¢ 

Second Quarter 2004 10.4¢ 7.7¢ 

Third Quarter 2004 10.4¢ 7.5¢ 

Fourth Quarter 2004 10.9¢ 8.6¢ 

First Quarter 2005 10.8¢ 8.4¢ 

Second Quarter 2005 10.6¢ 8.1¢ 

Third Quarter 2005 11.0¢ 8.5¢ 

Fourth Quarter 2005 11.7¢ 8.7¢ 

First Quarter 2006 11.6¢ 8.8¢ 

Second Quarter 2006 11.4¢ 9.2¢

Third Quarter 2006 11.4¢ 9.3¢

Fourth Quarter 2006 11.4¢ 9.1¢

First Quarter 2007 11.4¢ 8.9¢

Second Quarter 2007 11.7¢ 9.1¢

Third Quarter 2007 11.8¢ 9.2¢
Note: All amounts are rounded 

Figure 25: Domestic Yield for Seven Major Airlines 

Percent Change in Airline Yield from 2000 (ATA Data) 

Month 

2001 

% 

Change 

in Yield 

2002 

% 

Change 

in Yield 

2003 

% 

Change 

in Yield 

2004 

% 

Change 

in Yield 

2005 

% 

Change 

in Yield 

2006 

% 

Change 

in Yield 

2007 

% 

Change 

in Yield 

Jan 4% -13% -15% -15% -21% -14% -15% 

Feb 0% -13% -17% -17% -24% -14% -16% 

Mar -3% -15% -18% -17% -21% -13% -12% 

Apr -3% -14% -18% -17% -20% -10% -12% 

May -7% -16% -19% -21% -21% -12% -13% 

June -9% -17% -19% -21% -18% -8% -8% 

July -9% -18% -15% -18% -14% -4% -3% 

Aug -13% -21% -17% -22% -18% -9% -6% 

Sept -18% -17% -16% -26% -20% -14% -14% 

Oct -19% -18% -18% -27% -21% -17% -14% 

Nov -16% -20% -18% -22% -16% -14% 

Dec -15% -16% -14% -21% -15% -14% 

Figure 26: Average Short-. Medium-, and Long-Haul Fares Second Quarter 2000-2007 

Fares for 300 mi, 1000 mi, and 1500 mi average distances (DOT Data) 

Fiscal Year Short Haul Medium Haul Long Haul 

2000 $116 $177 $226 

2001 $99 $154 $195 

2002 $106 $162 $196 

2003 $112 $161 $195 

2004 $109 $154 $182 

2005 $119 $162 $197 

Figure 27: Use of Business Fares 

Passengers Using Business Fares as a Percent of All Passengers First Quarter 2000 

through Second Quarter 2007 (BTS Data) 

Quarter Percent of Passengers 

Using Business Fares 
First Quarter 2000 21% 

Second Quarter 2000 19% 

Third Quarter 2000 18% 

Fourth Quarter 2000 16% 

First Quarter 2001 15% 

Second Quarter 2001 14% 

Third Quarter 2001 12% 

Fourth Quarter 2001 12% 

First Quarter 2002 13% 

Second Quarter 2002 12% 

Third Quarter 2002 12% 

Fourth Quarter 2002 13% 

First Quarter 2003 14% 

Second Quarter 2003 14% 

Third Quarter 2003 14% 

Fourth Quarter 2003 14% 

First Quarter 2004 13% 

Second Quarter 2004 12% 

Third Quarter 2004 12% 

Fourth Quarter 2004 12% 

First Quarter 2005 11% 

Second Quarter 2005 10% 

Third Quarter 2005 10%

Fourth Quarter 2005 10%

First Quarter 2006 10% 

Second Quarter 2006 11% 

Third Quarter 2006 11% 

Fourth Quarter 2006 12% 

First Quarter 2007 12% 

Second Quarter 2007 11% 

Figure 28: Passenger Load Factors 

Actual versus Breakeven Percentages Fourth Quarter 2000 through Third Quarter 

2007 (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 71% 86% 

First Quarter 2003 69% 84% 

Second Quarter 2003 75% 79% 

Third Quarter 2003 78% 75% 

Fourth Quarter 2003 73% 77% 

First Quarter 2004 72% 75% 

Second Quarter 2004 78% 77% 

Third Quarter 2004 79% 83% 

Fourth Quarter 2004 75% 88% 

First Quarter 2005 75% 83% 

Second Quarter 2005 80% 80% 

Third Quarter 2005 81% 83% 

Fourth Quarter 2005 77% 86% 

First Quarter 2006 77% 82% 

Second Quarter 2006 82% 77% 

Third Quarter 2006 81% 79% 

Fourth Quarter 2006 78% 79% 

First Quarter 2007 77% 78% 

Second Quarter 2007 83% 78% 

Third Quarter 2007 83% 78% 

Note: All percentages are rounded. 

Figure 29: Actual Airline Load Factors 

Actual Percentages for Third Quarter 2007 (DOT Data) 

Airline 

Actual 

Load 

Factor 

Southwest 76.5% 
Delta 83.9% 

America West 84.0% 

American 83.9% 

Continental 84.7% 

Northwest 87.2% 

United 84.7% 

US Airways 83.2% 

Alaska 79.8% 

JetBlue 82.1% 

Figure 30: Debt-to-Investment Ratio All Major Airlines 

First Quarter 2001 through Third Quarter 2007 (DOT Data) 

Quarter Ratio 

(Percentage)

First Quarter 2001 54% 

Second Quarter 2001 54% 

Third Quarter 2001 60% 

Fourth Quarter 2001 66% 

First Quarter 2002 67% 

Second Quarter 2002 69% 

Third Quarter 2002 73% 

Fourth Quarter 2002 87% 

First Quarter 2003 89% 

Second Quarter 2003 90% 

Third Quarter 2003 91% 

Fourth Quarter 2003 91% 

First Quarter 2004 93% 

Second Quarter 2004 96% 

Third Quarter 2004 98% 

Fourth Quarter 2004 102% 

First Quarter 2005 107% 

Second Quarter 2005 110% 

Third Quarter 2005 122% 

Fourth Quarter 2005 207% 

First Quarter 2006 102% 

Second Quarter 2006 104% 

Third Quarter 2006 106% 
Fourth Quarter 2006 106% 

First Quarter 2007 106% 

Second Quarter 2007 69% 

Third Quarter 2007 61% 

Note: All percentages are rounded 

Figure 31: Debt-to-Investment Ratio by Airline 

For the Quarter Ending September 30, 2007 (DOT Data) 

Airlines Ratio 

(Percentage) 

Southwest 20.1% 

Alaska 59% 

America West 2.2% 

Northwest 47.7% 

Continental 80.1% 

American 104.0% 

US Airways 44.3% 

Delta 45.9% 

United 78.2% 

Figure 32: Jet Fuel Cost Per Gallon (ATA Data Domestic Fuel Costs) 

Month 

2001 

Average 

Cost 

2002 

Average 

Cost 

2003 

Average 

Cost 

2004 

Average 

Cost 

2005 

Average 

Cost 

2006 

Average 

Cost 

2007 

Average 

Cost 

January $0.86 $0.60 $0.84 $0.95 $1.31 $1.79 $1.81 

February $0.85 $0.62 $0.88 $0.97 $1.32 $1.82 $1.75 

March $0.80 $0.62 $1.05 $0.98 $1.45 $1.81 $1.82 

April $0.77 $0.69 $0.83 $1.00 $1.56 $1.90 $1.94 

May $0.78 $0.70 $0.76 $1.08 $1.52 $2.05 $2.04 

June $0.81 $0.67 $0.75 $1.07 $1.56 $2.06 $2.03 

July $0.77 $0.71 $0.78 $1.10 $1.61 $2.08 $2.09 

August $0.77 $0.72 $0.83 $1.18 $1.79 $2.13 $2.12 

September $0.79 $0.77 $0.80 $1.24 $1.90 $1.99 $2.11 

October $0.71 $0.81 $0.82 $1.38 $2.15 $1.87 

November $0.66 $0.77 $0.84 $1.37 $1.86 $1.80 
December $0.57 $0.76 $0.88 $1.27 $1.70 $1.86 

Note: December 2001 $0.57. 

Note: September 2007 $2.11. 

Note: Numbers are rounded 

Figure 33: Airport and Airway Trust Fund 

FAA Budget and Funding Fiscal Year 2002 to Fiscal Year 2008 (FAA Data) 

Fiscal Year Trust Fund 

Revenues 

FAA Budget 

Request 

Uncommitted 

Balance 

2002 $9.9 $13.3 $4.8 

2003 $9.3 $13.6 $3.9 

2004 $9.7 $13.9 $2.4 

2005 $10.7 $13.9 $1.9 

2006 $11.1 $14.3 $1.8 

2007 $11.9 $14.2 $2.0 

2008 $12.6 $14.1 $3.1 

Note: Figures for Fiscal Years 2007 and 2008 are estimated. 

Figure 34 Departures by Airport Types 

Percent Change in Scheduled Domestic Flights August 2001 through August 2007 

compared to August 2000 (FAA Data) 

Month Year 

At 

Large-Hub 

Airports 

At 

Medium-Hub 

Airports 

At 

Small-Hub

Airports 

At 

Non-Hub 

Airports 

August 2001 1% 2% 0% -6% 

August 2002 -8% -6% -6% -11% 

August 2003 -11% -9% -7% -15% 

August 2004 -3% -4% -1% -21% 

August 2005 -1% -4% -1% -21% 

August 2006 -5% -5% -8% -27% 

August 2007 -5% -1% -1% -27% 

Note: All percentages are rounded 

Figure 35: Access to Large Airports 

Percent Change in Number of Scheduled Flights and Available Seats August 2007 

versus August 2000 (FAA Data) 
To Large Airports Flights Seats 

Large -6% -10% 

Medium 3% -6% 

Small 0% -8% 

Non-Hub -21% -8% 

Note: All percentages are rounded 

Figure 36: Regional Differences in Service at Non-Hubs 

Percent Change in Available Seats at Non-Hub Airports 

August 2007 versus August 2000 (FAA Data) 

Region 

Percent Change 

in Available 

Seats 

Northeast (includes Connecticut, Maine, 

Massachusetts, New Hampshire, New Jersey, New 

York, Pennsylvania, Rhode Island, Vermont) 

-26% 

Midwest (includes Illinois, Indiana, Iowa, Kansas, 

Michigan, Minnesota, Missouri, Nebraska, North 

Dakota, Ohio, South Dakota, Wisconsin) 

-28% 

South (includes Alabama, Arkansas, Delaware, 

Florida, Georgia, Kentucky, Louisiana, Maryland, 

Mississippi, North Carolina, Oklahoma, South 

Carolina, Tennessee, Texas, Virginia, West Virginia) 

-17% 

West (includes Alaska, Arizona, California, Colorado, 

Hawaii, Idaho, Montana, Nevada, New Mexico, 

Oregon, Utah, Washington, Wyoming) 

-12% 

National Average -19% 

Note: All percentages are rounded. 

Figure 37: Essential Air Service 

Congressional Funding and Subsidized Communities Fiscal Year 2001 through 

Fiscal Year 2008 (DOT Data) 

Fiscal Year Appropriations 

In Millions 

Number of 

Communities 

Subsidized 

2001 $50 115 

2002 $113 123 
2003 $102 125 

2004 $102 138 

2005 $106 152 

2006 $109 153 

 2007 $109 143 

2008 50 ? 

Note: President’s proposed FY 2008 Budget; actual number of communities 

supported is unknown.