UPDATE 5 - September Airline Results Extravaganza

Here's a quick summary on all the airline results that I have seen so far:

AirTran
Sept RPM=950 Million (+11.6%) Load Factor=61.8 % (-9.4) ASM=1.5 Billion (+28.6%)
YTD RPM=10.4 Billion (+24.7%) Load Factor=74.1 % (-.2) ASM=14.0 Billion (+25.0%)

Alaska
Sept RPM=1.4 Billion (+5.9%) Load Factor=73.6% (+1.2) ASM=1.9 Billion (+4.2%)
YTD RPM=13.6 Billion (+6.0%) Load Factor=77.5% (+.9) ASM=17.5 Billion (+4.7%)

American (without American Eagle)
Sept RPM=10.6 Billion (-1.4%) Load Factor=75.5% (-.7) ASM=14.0 Billion (-.5%)
YTD RPM=106.2 Billion (+1.1%) Load Factor=80.5% (+1.8) ASM=131.8 Billion (-1.1%)

ATA (Scheduled Service)
Sept RPM=299.0 Million (-37.6%) Load Factor=74.5 % (+3.6) ASM=400.0 Million (-40.6%)
YTD RPM=3.1 Billion (-43.4%) Load Factor=80.0 % (+10.2) ASM=3.8 Billion (-50.6%)

Continental (Mainline and Regional)
Sept RPM=6.9 Billion (+11.5%) Load Factor=78.6% (+1.2) ASM=8.8 Billion (+9.9%)
YTD RPM=67.7 Billion (12.6%) Load Factor=81.0% (+1.7) ASM=83.6 Billion (+10.2%)

Delta
Sept RPM=9.1 Billion (-3.4%) Load Factor=74.6% (+1.5) ASM=12.2 Billion (-5.4%)
YTD RPM=88.2 Billion (-4.5%) Load Factor=78.8% (+1.5) ASM=112.0 Billion (-6.2%)

Frontier
Sept RPM=616.5 Million (+11.3%) Load Factor=67.6% (-3.4) ASM=911.6 Million (+17.0%)
YTD RPM=6.4 Billion (+17.7%) Load Factor=77.8% (+1.4) ASM=8.2 Billion (+15.7%)

Hawaiian
Sept RPM=548.8 Million (-4.0%) Load Factor=83.1% (-6.0) ASM=660.3 Million (+2.9%)
YTD RPM=5.1 Billion (+2.1%) Load Factor=86.8% (+0.1) ASM=5.9 Billion (+2.0%)

JetBlue
Sept RPM=1.6 Billion (+8.2%) Load Factor=72.6% (-5.1) ASM=2.3 Billion (+15.8%)
YTD RPM=17.5 Billion (+16.5%) Load Factor=78.8% (+1.5) ASM=21.3 Billion (+22.9%)

Northwest
Sept RPM=6.2 Billion (-5.5%) Load Factor=81.3% (+1.3) ASM=7.6 Billion (-7.1%)
YTD RPM=59.1 Billion (-6.5%) Load Factor=84.7% (+3.0) ASM=69.8 Billion (-9.8%)

Republic
Sept RPM=534,827(+49.0%) Load Factor=66.9% (+1.9) ASM=799,018(+44.7%)
YTD RPM=1.8 Million (+56.8%) Load Factor=72.9% (+4.7) ASM=2.5 Million (+46.5%)

Spirit
Sept RPM=299.0 Million (+15.0%) Load Factor=70.0% (-2.4) ASM=427.0 Million (+18.8%)
YTD RPM=3.4 Billion (-4.0%) Load Factor=72.4% (-1.0) ASM=4.3 Billion (-2.7%)

Southwest (System)
Sept RPM=5.2 Billion (+9.8%) Load Factor=67.2%(-.2) ASM=7.7 Billion (+10.1%)
YTD RPM=50.9 Billion (+12.9%) Load Factor=74.0% (+2.9) ASM=68.7 Billion (+8.4%)

United (System)
Sept RPM=9.3 Billion (+1.3%) Load Factor=79.5%(-.7) ASM=11.6 Billion (+2.3%)
YTD RPM=89.0 Billion (+3.5%) Load Factor=82.8% (+.9) ASM=107.6 Billion (+2.3%)

US Airways (Combined US Airways, America West and Regional)
Sept RPM=4.8 Billion (-4.8%) Load Factor=72.2 % (-.5) ASM=6.6 Billion (-4.2%)
YTD RPM=48.1 Billion (-6.8%) Load Factor=78.8 % (+2.1) ASM=61.1 Billion (-9.3%)

Update 1 - Added JetBlue
Update 2 - Added Frontier and Spirit
Update 3 - Added Southwest and alphabetized
Update 4 - Added Northwest
Update 5 - Added Hawaiian

Delta is Smokin' in a Bad Way

What are the odds...two Delta Airlines flights reporting smoke in the cabin within 24 hours.

The first occurrence was Thursday on a Paris to Atlanta flight causing a diversion into Knoxville, Tennessee. Apparently passengers smelled smoke in the cabin on the Delta 767 but the diversion was considered precautionary. Passengers deplaned at the gate and caught a flight to Atlanta a few hours later. I know I shouldn't make light of this but the thought of a planeload of Parisians in Knoxville's airport kinda makes me chuckle.

The second occurrence was this morning on a Delta MD-80 that had just landed in Boston. The flight crew "detected smoke in the cabin" as they were taxiing to a gate. They immediately stopped and had 40 passengers and 5 crew evacuate using the escape slides. Two people were injured which doesn't surprise me. Anybody that has ever taken a ride down an evac slide will tell you its not all fun and games. Its a lot steeper than it looks.

NEWS: Judge Tells Delta and Pilots to Get Back At It

Judge Prudence Carter Beatty (awesome judge name) presiding over Delta's banktruptcy has told the airline and its pilots union to go back to the negotiating table. The other option would be hand it over to a mediator but Beatty says "I have never had much luck with mediators.". Delta maintains their ready to negotiating anytime and the pilot's union says "yeah us too" but questions whether the airline folks really understand the term "negotiate". Union chairman, Lee Moak was quoted by the AP as saying, "What she (Beatty) was suggesting is that the other party could learn how to negotiate," he said. "It's hard to negotiate if one party does not move off one position." Delta claims they are just asking for the minimum cuts they need to stay afloat. I think the next sit down with these two groups could end up being pretty brief.

NEWS: Delta Airlines Loss is Breathtaking

If Northwest's post bankruptcy losses put you a bit off-balance then make sure you're sitting down for this one. Papers filed in bankruptcy court by Delta Airlines indicate that it lost $1.1 BILLION between Sept 15 and Oct 31. Once again there's some bankruptcy related financial wrangling going on but taking that out of the equation still leaves you with a $472 million in losses...$10 million A DAY. With those numbers its painfully obvious that the $3 billion in cost savings that Delta is pursuing in bankruptcy will not save it. Something more is needed.

NEWS: More on Delta's Financial State

Delta warns of possible pilots strikeMSNBC has a nice wrap up on the information Delta released today regarding its financial state. Predictably its bad...really bad. I say predictably not just because the airline is in bankruptcy but because this is an airline seeking $325 million in concessions from its pilots. It is trademark cookie cutter airline bankruptcy stuff to release this info in parallel with any big negotiation. Click Read More!

Also threatened is the pension plan which Delta estimates needs about $3.4 billion, (b-illion, with a b) in funding to cover 2006-2008. Wow, suddenly $325 million from the pilots doesn't seem like nearly enough. Hello...Pension Benefit Guaranty Corporation?...This is Delta Airlines calling...

NEWS: Reduced Fares are NOT Killing the Airlines

Today's Hero is Jamie Baker of J.P. Morgan Chase who also gets the quote of the day award. But first...the back story. I recently ranted on the whining and complaining from other major airlines about the impact Delta's Simplifares would have revenue. Today's news supports my position. Airline revenues have beat analyst predictions for January by actually edging up over last years performance while average fares fell. This is with Delta's supposedly devastating revenue impailing fare cuts in place for nearly the whole month. Now...back to Today's Hero Mr. Baker, who is quoted from his research paper Wednesday:

"Perhaps mimicking the domestic pricing philosophy of low-cost carriers and improving the value proposition of business travel though reasonable fares isn't as stupid as recently suggested by one airline management,"

Well put Mr. Baker! I believe this puts the ball back into the court of Jeff Smisek, Continental Airlines President.

Jeff Smisek, Continental Airlines President, was the target of this quote because he called Delta's Simplifare plan "simply stupid" with God and country listening via the Wall St. Journal. I'll be interested to see if Mr Smisek will step up to the plate on this one. Perhaps having a quote in the Wall St Journal that gets knocked down and stepped on will make him a little gun shy about further quotes. Round 1 goes to Delta.

Finally, I'd be remiss if I did not point out that, despite the increase in revenue, the airlines still had a dismal January with with lots of losses. Fuel prices and overcapacity are still taking a brutal toll.

OPINION: Nobody Complains About Southwest Airlines

So I clicked on over to the DOT's website to take a first hand look at the 2004 airline results. Here's one thing that jumps right out at me. The top 5 when it comes to lowest complaint rate is dominated by low cost carriers. The best of the best is Southwest Airlines with a miniscule .09 complaints per 100,000 "enplanements", followed closely by JetBlue at .19. To put that in perspective United Airlines is roughly midpack with a .88, Delta Airlines on the high end at 1.06 and US Airways is way outta line with a whopping 4.06.

I think I understand why JetBlue would rank well up in the standings. This is a low fare carrier offering up some pretty nice service and by all accounts they do it well. But how does Southwest do it? This is strap-their-butts-in-a-seat-and-sling-'em-peanuts service. Why does this NOT rub people the wrong way? I say its because they manage expectations. Southwest does not pretend to be anything they are not. They take great pride in offering low budget transportation to the flying masses. Their image is self perpetuating at this point. Thus, the people pay peanuts get peanuts and thats just fine with them because they just saved money.