Airline Analysis
by Robert G Herbst
June 30, 2008.. was the last update for this page:
This page will provide an overall summary of the airlines covered in this analysis by comparing selected metrics for year ending 2007 with year 2000.
Note: Year 2000 was the last year of the most recent industry growth period. It was also the last year before the tragic events of 911 caused the largest financial destruction the airline industry has ever experienced.
American Airlines acquired selected assets of TWA in April of 2001. TWA data is combined with American from year 2001 forward. Where noted, AA and TW data is adjusted proforma for year 2000.
American Airline employees agreed to wage and benefit concessions in the 2nd quarter of 2003.
Continental Airline pilots agreed to wage and benefit concessions in the 2nd quarter of 2005. Continental flight attendants agreed to wage and benefit concessions in the first quarter of 2006.
United Airlines operated under bankruptcy provisions from December 2002 until February 2006.
Northwest Airlines operated under bankruptcy provisions from September 2005 until May of 2007.
Delta Airlines operated under bankruptcy provisions from September 2005 until April 2007.
USAirways operated under bankruptcy provisions from August 2000 until March of 2003 and again from September 2004 until September 2005. The merger of USAirways and America West was approved in September of 2005.
(Note: In order to show post bankruptcy comparisons, long-term debt and capital lease data for Delta and Northwest shown below is as of 6/30/2007.)
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|
|
Trailing 12 months US market share | |
Ratio of wide body aircraft to total mainline fleet |
| |||
(wide body = 2 aisles) |
|
(thru Mar 2008) | ||
(as of 12/31/2007) |
|
American |
14.7% | |
American |
23.5% |
|
Southwest |
12.4% |
United |
25.4% |
|
United |
11.3% |
Delta |
24.4% |
|
Delta |
10.8% |
Continental |
12.6% |
|
Continental |
7.8% |
Northwest |
17.1% |
|
Northwest |
6.6% |
USAir |
5.3% |
|
USAir |
6.2% |
|
|
|
Total |
69.8% |
The following index provides a list of charts comparing year 2007 to 2000.
For a PDF file of the charts: click here.
Index of charts comparing year 2007 to year 2000-
1. Operating revenue (million)
2. Passenger revenue (million)
3. Total Assets (mill)
4. Long-term debt, Capital leases less current maturities (million)
5. Aircraft
6. Capacity (ASM) (million)
7. Load factor percentage
8. Yield
9. Employees
10. Pilots
11. Flight Attendants
12. Total fuel expense (million)
13. Wage/benefit expense (million)
14. Wage/salary expense total (W2) (million)
15. Management salary expense (W2) (million)
16. Pilot wage expense (W2) (million)
17. Flight Attendant wage expense (W2) (million)
18. Passenger count (one way)
19. Average passenger fare (one way)
20. Management salary cost of avg pass fare
21. Management salary cost % of avg pass fare
22. Pilot wage/salary cost of avg pass fare
23. Pilot wage/salary cost % of avg pass fare
24. Flight Attendant wage/salary cost of avg pass fare
25. Flight Attendant wage/salary cost % of avg pass fare
26. Ratio of passengers per employee
27. Ratio of passengers per FA
NOTES --
Some data has been excluded due to bankruptcy accounting or/and having irrelevant impact for comparison.
Some calculations use cumulative data with a year ending divisor which may cause a distortion of the conclusion.
USAIR includes America West (SEC) US Security and Exchange Commission (BTS) Bureau of Transportation Statistics Note: There are differences between how airlines categorize data for BTS & SEC reports. [1] Total revenue excludes recognized affiliate passenger revenue. [2] Operating expense excludes recognized affiliate expenses. [3] Does not include benefit expense. [4] Recognized LT debt plus Cap leases less current maturities. [5] Operating income (loss) excludes known affiliate revenue and expenses. [6] Net profit (loss) is from SEC and includes affiliate data. [7] Estimated median stock price for the time period noted. [8] Active full time equivalent employees from BTS data. May be estimated when data is not available. [9] Operating margin excludes recognized affiliate income and expense. [10] Avg passenger fare is calculated from passenger revenue/passenger count. [11] Operating income (loss) per passenger is from average one way fare and does not include affiliate impact. [12] Southwest categorizes management personnel and salaries differently from other airlines.[15] Due to UAL's bankruptcy from Dec 2002 to Feb 2006. UAL debt for 2002 is as of 9/30/2002.
[20] Delta reports consolidated mainline and affiliate data for several categories. As such, airline to airline comparisons may not be valid. [21] NWA Operating acft includes some freighters. ASM pilot ratios reconcile 18 pilots per freighter. ASM/acft ratios exclude freighters. FA/acft ratios exclude freighters. Glossary of Terms- ASM— Available Seat Mile. A measure of capacity. ASM’s equal the total number of seats available for transporting passengers during a reporting period multiplied by the total number of miles flown during that period. RPM— Revenue Passenger Mile. One revenue-paying passenger transported one mile. RPM's equal the number of revenue passengers during a reporting period multiplied by the number of miles flown by those passengers during that period, RPM’s are also referred to as “traffic”. Yield— The amount of passenger revenue earned per RPM during a reporting period. RASM— Operating Revenue per ASM. The amount of operating revenue earned per ASM during a reporting period. RASM is also referred to as “unit revenue.” PRASM— Passenger Revenue per ASM. The amount of passenger revenue earned per ASM during a reporting period. Passenger RASM is also referred to as “unit revenue.” CASM— (Operating) Cost per Available Seat Mile. The amount of operating cost incurred per ASM during a reporting period, also referred to as “unit cost”.LF-- Passenger Load Factor — A measure of utilized available seating capacity calculated by dividing RPMs by ASM’s for a reporting period.
Average fare-- Represents the average one-way fare paid per flight segment by a revenue passenger. O/W -- One way. Disclaimer: Data source includes SEC, BTS, labor web sites & Corporate Reports. Except where noted, recognized affiliate revenue and costs were removed to provide mainline comparisons. All data is subject to errors. For more equivalent comparisons, some UAL, NWA & DAL data immediately pre & post bankruptcy was used.
