Japan Airlines delivers industry-beating on-time performance; Air India consistently lags on punctuality
The on-time performance (OTP) is one of the most important performance indicators for airlines. It shows how frequently the airline has managed to operate flights within the declared scheduled time.
OTP is a measure of service quality/ punctuality. The higher OTP can help airlines to meet its customer expectations. At the same time, improvement in customer service can also boost airline’s profitability.
Over the past 24-months, OTP for Japan Airlines has consistently outperformed the industry average. On the other hand, OTP for state-run Air India has consistently remained below the industry average in the last 24-months except April 2017.
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Passenger load factor is one of the key operating metrics for airlines. It measures how much of an airline’s passenger carrying capacity is used. Aviation is a capital-intensive sector and it is important for airlines to maintain higher load factor as it can lead to improvement in profitability.
FiND, an alternative data platform identified 12 airlines witnessing consistent improvement in monthly passenger load factor in 2017 when compared with 2016. We have highlighted passenger load factor trend for 4 such airlines below:
Delta Air Lines rallied on Tuesday after the company issued better-than-expected guidance for the third quarter passenger unit revenue. Despite fall in passenger traffic in September 2017, Delta management expects passenger unit revenue to increase by 2% for the quarter ended September 2017.
In September, operations of few US-based airlines including Delta were affected by the Hurricane Irma. Bad weather conditions forced Delta to cancel 22,000 flights in the last month. As a result, the carrier reported a drop of 2.3% (on a year-on-year basis) in the number of passengers carried during September.
Heckyl’s alternative data platform FiND did not show any major impact of Hurricane Irma on Delta’s operational performance for the quarter ended September 2017. Our analysis showed a growth of 3% (on a y-o-y basis) in the number of passengers carried by Delta during the quarter ended September 2017.
The aviation sector, after years of underperformance, has been bullish of late as evidenced by the turnaround of Spicejet’s fortunes and a strong response for the Indigo IPO. This turnaround has led to a lot more interest in the aviation sector in recent times. In this article, let us understand how operational factors affect the bottom-line of an airline and the use of open datasets to estimate these factors. An airline’s operational factors can help us understand which airline uses its fleet efficiently, which airline has an optimal route network or which airline’s fleet is optimized for fuel efficiency.