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

JetBlue Likes O'Hare, Gary Likes JetBlue

Gary as in Gary/Chicago International Airport. I recently posted on JetBlue's attempt to wedge itself into Chicago O'Hare airport but I came across this interesting little piece on the Northwest Indiana Times. Seems that Gary/Chicago International Airport thinks they would be a good alternative to O'Hare especially if JetBlue's bid fails. Even if JetBlue were to get into O'Hare I think that Gary will continue to lure JetBlue their way. Its a very good article and it provides some nice details on JetBlue's plans to invade Chicago one way or the other. I suggest you head on over and read it.

United Says No Fair to JetBlue in O'Hare

JetBlue has publicly coveted service to Chicago for quite a while so yesterday's announcement that it is has formally requested landing rights at Chicago O'Hare (ORD) comes as no surprise. However, this unabashed attempt to step into the backyard of two of the biggest airlines in the US, United Airline and American Airlines, did not go unnoticed. United has quickly flown the protest flag but not for anything related to business or congestion at O'Hare. Instead, United appears to be arguing on a technicality by stating:

"JetBlue must operate in accordance with the regulatory rules of the road, just as all other carriers must do. Because its current request ignores those rules, it must be denied,"

While that may be true it is, at best, a delaying tactic. If the FAA sides with United then its only a matter of time until JetBlue refiles the right way. So what will the United's next protest be? JetBlue's colors clash with the ticket counters in the terminal? Okay that's kinda unfair and over-simplistic but still...

NEWS: Happy Birthday JetBlue

Hard to believe but JetBlue is turning 5 on Feb 11th. The festivities at their birthday party (being hosted at JFK) include the delivery of their 71st aircraft. Five years ago JetBlue came blasting into the industry as one of the best capitalized start ups ever and proceeded to set the mark for level of service in the low fare carrier segment. Their leadership has been focused and their business plan works. All of this has allowed JetBlue to graduate from the ranks of "start up" to "major" airline in a very short period.

So JetBlue is all grown up which is good because every major in the industry is trying to revamp and compete directly with them. My only concern is the decision to add a second fleet of regional jets in addition to their A320's. Two fleet types means additional training, maintenance and inventory requirements...in other words costs go up. But the folks running this airline are pretty bright so I will give them some latitude and just sit back to see what happens.

Here's the "Background" from the JetBlue press release:
"JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 69 new Airbus A320 aircraft and plans to add 15 additional A320s and 7 Embraer E190s to its fleet in 2005. Based at New York City's John F. Kennedy International Airport, JetBlue currently operates 276 flights a day and serves 30 destinations in 12 states, Puerto Rico, the Dominican Republic and The Bahamas.

All JetBlue aircraft feature roomy leather seats, all equipped with an in-seat digital entertainment system offering up to 36 channels of free DIRECTV(R) programming and, on many flights, a selection of first-run movies and bonus features from FOX InFlight Premium Entertainment."

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.

NEWS: JetBlue Big on Boston

JetBlue has announced that they intend to expand their operation at Logan Int'l in Boston. The plan is to grab five gates in May and then continue to grow at one gate every six months for the next three years. Another good example of an airline moving forward in this difficult market.

No word on what they intend to do with these additional gates but JetBlue's continued growth on the East Coast will keep pressure on the legacy airlines operating in that region.

Update: Some of this growth may go hand in hand with the recent announcement that JetBlue intends to add new daily nonstop service from Boston to Las Vegas, NV and San Jose, CA effective May 3.

NEWS: JetBlue Beats the Guess-timators

JetBlue announced a $2.4 million profit for the 4th Quarter. That's not a huge number but it beat the analyst (aka the guess-timators) who were expecting a loss for the airline. It appears that fuel hedging carried the day for JetBlue much like it did for Southwest Airlines in 2004. JetBlue has turned a profit every quarter since they went public in April 2002 making it the darling of Wall Street. It will be difficult to continue that streak through 2005 since fuel prices do not show any sign of a major decline. Furthermore, there is some manuevering among the low fare carriers that will place more competitive pressure on JetBlue. We saw this most recently with the announcement of new routes for budding low cost carrier Song. But JetBlue remains well capitalized, their leadership seems adept at reacting to the market and their business plan seems focused...it will be an interesting year.

NEWS: JetBlue vs. Southwest

Not to be upstaged by Southwest's announcement that they are marching into Pittsburgh, JetBlue announced that they will start flying New York-Boston around the October time frame. For whatever reason I found myself comparing the two announcements. Southwest is looking to fill a void left by the declining US Airways. Its a time tested Southwest formula, find an under served market and take it over. Its worth noting that Southwest did stretch a bit in deciding to take on a market that does not have a secondary airport for them to use (like Midway in Chicago for example). Not quite their modus operandi but overall this is what Southwest does and it works for them...a lot.

JetBlue's move seems a little bolder than Southwest's...and by bolder I mean riskier. New York-Boston is a route served by heavy weights like American and Delta. I don't think its under served. The saving grace in JetBlue's plan may be their product which, in my opinion, should compete head to head with the big boys. JetBlue is still finding a way to deliver what is, by all accounts, a higher end product at discount prices. Business flyers are starting to like it...a lot.

Interesting...that's all.