Performance Measures: Southwest Airlines Compared to All
Low-Cost Carriers
2006
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| Measure 1: System Operating Profit/(Loss) per Originating
Passenger in Dollars |
$10.94 |
$6.56 |
1 |
All of the
network*** carriers except Delta and Alaska exceeded the profitability per
originating passenger of Southwest |
| Measure 2: System Operating Expenses (excluding Regional Jet
Contract) per Originating Passenger in Dollars |
$95 |
$123 |
1 |
Operating
costs per enplanement for low-cost carriers increased mainly due to
double-digit fuel cost increases and higher wages for a maturing work
force. |
| Measure 3: System Operating Expenses (excluding Regional Jet
Contract) per Aircraft in Millions of Dollars |
$17.614 |
$19.144 |
2 |
Low-cost
carrier operating expenses per aircraft increased by 24 percent from 2001 to
2006. |
| Measure 4: Passenger Revenue per Originating Passenger (excluding Regional Jet Contract Revenue)
in dollars |
$100 |
$122 |
7 |
Network
and low-cost carriers benefited from fare increases that began in
mid-2005. Low-cost carrier revenue per
passenger rose 11 percent from 2001 to 2005 and 8 percent from 2005 to 2006. |
| Measure 5: Full-Time Equivalent Employees* per Aircraft |
69 |
75 |
3 |
The industry
showed a wide-range of performance, with AirTran's 62 FTEs per aircraft, the
fewest of any carrier, about half the 123 FTEs reported by Delta and ATA. |
| Measure 6: Average Monthly Available Seat-Miles (ASMs) per
Full-Time Equivalent Employee* in millions of ASMs |
242 |
232 |
3 |
Both
the network carriers and low-cost airlines substantially improved
productivity with more ASMs generated per FTE from 2001 to 2006. |
| Measure 7: Average Monthly Revenue Aircraft Minutes per
Full-Time Equivalent Employee* in Minutes |
255 |
234 |
2 |
The network
carriers improved by 40 percent but the low-cost carrier group has a wide
advantage over the network airlines in average monthly revenue air minutes
per FTE. |
| Measure 8: Average Monthly Originating Passengers per Full-Time
Equivalent Employee* |
223 |
173 |
1 |
In 2006, the
low-cost carriers generated 173 originating passengers per FTE employee
compared to 75 passengers per FTE for the network airlines. |
| Measure 9:
Fuel Cost in Dollars per Originating Passenger |
$27 |
$37 |
1 |
The low-cost
group paid $61 less in fuel costs per originating passenger than the network
carriers in 2006. |
| Measure 10: Average Full-Time Equivalent Employee* Compensation
(Salaries + Benefits) per Originating Passenger in dollars |
$37 |
$39 |
4 |
The financially
stronger low-cost carrier group's compensation expenses increased a modest $4
per originating passenger, reflecting wage increases for the group's
increasingly senior work force partially offset by sustained operational
efficiencies. |
| Measure 11: Average Annual Full-Time Equivalent Employee*
Compensation (Salaries + Benefits) in dollars |
$100,254 |
$80,873 |
1 |
From
2001 to 2006, low-cost carrier annual compensation costs rose 40 percent
while network airline costs were up a more modest 8 percent. |
Source: Bureau
of Transportation Statistics
* Full-time Equivalent Employee (FTE) calculations count two
part-time employees as one full-time employee.
** Low-cost carriers are those that the industry recognizes as
operating under a low-cost business model, with fewer infrastructure costs
and greater expectations of productivity.
*** Network carriers operate a significant portion of their
flights using at least one hub where connections are made for flights on a
spoke system.
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