It has been a bumper summer for air travel, but unfortunately, passengers have experienced more delays and disruptions than ever before. As we approach the Labor Day weekend, which is considered the unofficial end of the peak travel season, many travelers may face further disruption due to Hurricane Idalia heading toward Florida.
Over the years, summer flight delays have been steadily increasing, with the exception of 2020 when the COVID-19 pandemic led to a significant reduction in scheduled flights. According to data from flight-tracker FlightAware, between May 1 and Aug. 29, approximately 24% of flights to, from, or within the U.S. experienced delays. The average delay time was 55 minutes, compared to 52 minutes the previous year.
A delayed flight is defined as one that arrives 15 minutes or more after its scheduled arrival time.
Comparing the same period in previous years, in 2022, 23% of flights were delayed, while in 2021, 20% of scheduled flights experienced delays. In 2019, the delay rate was slightly lower at 18%.
Unfortunately, it’s not just limited to the summer season. Throughout this whole year, passengers have had a tougher time. In 2023 alone, 23% of flights have been delayed, surpassing the 21% delay rate seen in the first eight months of the previous year.
When it comes to punctuality among major airlines, Delta Air Lines (ticker: DAL) takes the lead in 2023 with only 20% of its flights experiencing delays. Following closely behind is Alaska Airlines with a delay rate of 21%.
The remaining members of the so-called Big Four airlines have similar performance records. American Airlines (AAL), which recently received a record $4.1 million fine for extended tarmac delays, ranks third with a delay rate of 25%.
In comparison, United Airlines (UAL) and Southwest Airlines (LUV) have had 26% of their flights arriving more than 15 minutes late. Southwest Airlines has an average delay time of 36 minutes, while Alaska Airlines averages 37 minutes. Delta Airlines, United Airlines, and American Airlines all have an average delay time of around an hour.
On the other end of the spectrum, Frontier Airlines (ULCC) experienced delays on 35% of their flights, followed by JetBlue Airways (JBLU) at 33% and Spirit Airlines (SAVE) at 32%.
It’s worth noting that Frontier, JetBlue, and Spirit did not immediately respond to a request for comment when contacted early Wednesday.
Southwest Airlines Bounces Back After Holiday Travel Meltdown
Southwest Airlines surprised many with its impressive performance in the second quarter of 2023, despite a turbulent start to the year. The low-cost carrier faced a revenue loss of $325 million due to a holiday travel disruption, leading to a high number of cancellations and passengers switching to other airlines in January and February.
However, Southwest swiftly implemented an action plan and achieved a remarkable record of completing over 99% of its flights in the second quarter. This is considered the airline’s best performance in the past decade, proving its reliability to be on par with, or even better than, its competitors.
Despite its exceptional recovery, Southwest’s stock has not reflected its improved performance. In contrast to Delta and United, which have seen their stock rise by over 30% in the same period, Southwest’s shares have declined by 5.5% so far in 2023. One of the reasons for this is attributed to Delta and United’s strong international presence, as well as signs of a domestic market slowdown.
Investors lost confidence in Southwest following the disruption, causing the airline to miss out on the sector’s initial rally in 2023. While flight chaos typically does not have a significant impact on airline stocks, Southwest experienced a rare situation where consumer frustration directly affected its revenue.
Flight delays and cancellations are undoubtedly frustrating for passengers, but recent studies suggest that airfare costs play an even more significant role in determining customer satisfaction. A May study by data analytics firm J.D. Power revealed that passenger satisfaction has declined for the second consecutive year. The study attributed this decrease to higher costs and fees.
Thankfully, there is some good news for consumers as airline fares have been decreasing. Consumer price index data released earlier this month shows that airfares fell by 8.1% in July compared to the previous month. This marks the fourth consecutive monthly decline, with ticket prices in July being 18.6% lower than they were a year ago.
In conclusion, despite facing a challenging start to the year, Southwest Airlines has made an impressive recovery and achieved outstanding performance in the second quarter of 2023. While its stock may have lagged behind competitors due to various factors, such as international exposure and signs of a domestic slowdown, Southwest remains a reliable and competitive player in the airline industry.
