As Flight Delays at United, American & Delta Jump, Airlines Oppose Airport Proposal for Funding that Could Be Used to Reduce Delays

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1 Adam Yalowitz OnTimeFlights.org Campaign for On-time Flights Policy Brief As Flight Delays at United, American & Delta Jump, Airlines Oppose Airport Proposal for Funding that Could Be Used to Reduce Delays EXECUTIVE SUMMARY In 2014, the percentage of delayed flights at United, Delta and American Airlines increased 88 percent compared to A total of 1 in 4 flights were delayed or cancelled in 2014, with some routes experiencing more frequent delays or cancellations. The toll in 2014: 77 million minutes in flight delays, or about 12,000 years lost by passengers in the United States. As the U.S. airline industry is preparing for its busiest summer ever, our analysis of Department of Transportation data shows that the percentage of national aviation system delays attributed to high volume has gone up every single year since Passengers fortunes could begin to change this fall. As part of the FAA Reauthorization, airports want Congress to remove federal restrictions on a funding source that they could use to help curb these delays. The problem? Airlines are lobbying hard against it. Airline Delays on the Rise Frequent fliers: it may not be much consolation, but if you felt like you had way more delays in 2014 than you remember having a couple of years earlier, it probably wasn t just bad luck or your imagination. At United, American and Delta the percentage of flights delayed or cancelled went up 88 percent collectively, comparing 2014 to

2 Delta Air Lines saw the greatest surge in the percentage of flights delayed or cancelled between 2012 and 2014, with a 124 percent increase. During that same time period, American Airlines had a 66 percent increase in the percentage of flights delayed or cancelled. United Airlines had a 73 percent increase, but had a higher overall percentage of flights delayed or cancelled in both 2012 and 2014 than Delta and American. A total of 1 in 4 United, Delta and American flights were delayed or cancelled in These Big Three airlines account for over 50 percent of the entire domestic airline market. 2 1 in 4 flights delayed or cancelled in % increase American Airlines 73% increase United Airlines 124% increase Delta Airlines Increase in percentage of flights delayed or cancelled between 2012 and 2014 Some routes had it even worse. In 2014, United s flights to Atlanta were delayed or cancelled over 60 percent of the time. Almost 34 percent of Delta s flights to Chicago O Hare were delayed or cancelled. American fared worst on flights to San Francisco, with over 36 percent of flights delayed or cancelled. 2

3 Percentage of United, Delta and American arriving flights delayed or cancelled to the top 10 U.S. airports in United Delta American FLIGHTS TO: Chicago (ORD) 31.75% 33.96% 28.64% Atlanta (ATL) 60.57% 26.64% 23.06% Dallas/Fort Worth (DFW) 30.75% 23.06% 21.31% Los Angeles (LAS) 30.28% 23.42% 22.93% Denver (DEN) 27.16% 30.84% 33.43% Charlotte (CLT) 34.00% 31.19% 28.99% Las Vegas (LAS) 26.74% 25.67% 29.49% Houston (IAH) 24.37% 25.99% 23.25% San Francisco (SFO) 34.37% 32.06% 36.41% New York (JFK) 27.81% 28.03% 26.42% Cost to Passengers and the Economy While airline profits are anticipated to reach $25 billion this year, increasing flight delays imposes costs on passengers and the U.S. economy. There were over 77 million minutes in domestic flight delays in 2014, according to data from the U.S. Department of Transportation. 4 Statistician Nate Silver s FiveThirtyEight.com has estimated that flight delays resulted in 12,000 years lost by travelers in million minutes in domestic flight delays, ,000 years lost by travelers to flight delays, 2014 estimate $16 Billion The cost to passengers of flight delays was estimated at over $16 billion per year, according to a landmark 2010 study commissioned by the FAA that found that 3

4 flight delays cost the U.S. economy tens of billions of dollars each year based on data from A separate study by the U.S. Travel Association showed that in 2013, flight delays, cancellations and other flying hassles like airline fees discouraged Americans from taking 38 million trips, costing the U.S. economy $35.7 billion. 7 High Volume of Travel Increasingly a Culprit The airline industry has predicted that this summer will be the busiest in U.S. air travel history, with over 222 million travelers expected to fly this summer in the United States. 8 With the growth in air travel, airports are becoming more and more congested. In a 2014 study, the U.S Travel Association predicted that Thanksgiving-like travel conditions will soon become the new normal if America s airport infrastructure is not modernized. 9 Our analysis of Department of Transportation data reveals that the percentage of National Aviation System delays attributed to high traffic volume has gone up every single year since Delays due to high traffic volume more than doubled from 2006 to Airports want to Reduce Delays, but Airlines are Standing in the Way Frustrated travelers may feel helpless about mounting travel misfortunes, but a related behind-thescenes battle has been raging between airports and airlines in Congress. Airports want to reduce a federal restriction on a program that could help them reduce these delays, but airlines are lobbying hard against it. 4

5 Every airline ticket includes money to make airport improvements. Think better runways, more gates. Think less waiting in lines on the tarmac for what can feel too long. Right now, the federal government does not let airports set the Passenger Facility Charge (PFC) on their own. Instead, the federal government puts a cap on it, and that cap has not gone up since In fact, it s going in the opposite direction the PFC has lost over 36 percent of its value to $75 billion inflation in those 15 years. Over $75 billion is needed over the next five years for infrastructure improvements at America s airports. 11 Airports are trying to get permission to increase the PFC to keep up with travel demand to reduce delays and avoid Thanksgiving-like travel every day but airlines and their team of lobbyists are trying to stop them. Infrastructure modernization equals more terminal space for competitors, which equals more choices and better fares and service for consumers. U.S. Travel Association Executive Vice President Jonathan Grella 12 United, Delta, and American, as well as the industry group Airlines for America, together spent over $68 million total in lobbying efforts on a multitude of issues from 2012 to Since 2012, the airline industry has opposed allowing airports to set the Passenger Facility Charge based on what they need. 14 The fortune of travelers could change this fall when Congress takes up the FAA Reauthorization bill. President Obama has proposed allowing airports to increase the PFC if they need to, but again, the airlines are fighting it. This summer, frustrated and delayed travelers may be wise to use their newfound spare time to tell Congress to ignore the airlines and instead give airports a chance to make their next trip a bit smoother. They can do so at Campaign for On-time Flights The Campaign for On-Time Flights is an initiative of UNITE HERE. We represent hospitality employees at airports who work every day to get passengers where they re going, on time. We can t control the weather. But we ll do everything else we can. 5

6 Endnotes sites/default/files/page/2013/08/03_fact_sheet-airport_modernization_final.pdf opensecrets.org/lobby/clientsum.php?id=d &year=2015, lobby/clientsum.php?id=d &year=2015 and php?id=d &year=

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