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Flight delay impact on airfare and flight frequency: A comprehensive assessment

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  • Zou, Bo
  • Hansen, Mark

Abstract

This paper presents a comprehensive empirical analysis of flight delay impact on airfare and flight frequency in the US air transportation system. We model airfare and flight frequency as functions of cost and demand characteristics, competition effects, and flight delays at origin, destination, and intermediate hub airports. Estimation results confirm that airlines tend to pass delay cost onto passengers through higher fare, whereas delay has an upward effect on flight frequency. We find that proportionate airport delay reduction across the system can result in annual fare reduction in the order of billion dollars.

Suggested Citation

  • Zou, Bo & Hansen, Mark, 2014. "Flight delay impact on airfare and flight frequency: A comprehensive assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 54-74.
  • Handle: RePEc:eee:transe:v:69:y:2014:i:c:p:54-74
    DOI: 10.1016/j.tre.2014.05.016
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Wandelt, Sebastian & Sun, Xiaoqian, 2015. "Evolution of the international air transportation country network from 2002 to 2013," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 55-78.
    2. Fageda, Xavier & Flores-Fillol, Ricardo, 2016. "How do airlines react to airport congestion? The role of networks," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 73-81.
    3. Hansen, Mark & Liu, Yi, 2015. "Airline competition and market frequency: A comparison of the s-curve and schedule delay models," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 301-317.
    4. Sternberg, Alice & Carvalho, Diego & Murta, Leonardo & Soares, Jorge & Ogasawara, Eduardo, 2016. "An analysis of Brazilian flight delays based on frequent patterns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 282-298.
    5. Sun, Xiaoqian & Wandelt, Sebastian, 2014. "Network similarity analysis of air navigation route systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 416-434.
    6. Zou, Bo & Kafle, Nabin & Chang, Young-Tae & Park, Kevin, 2015. "US airport financial reform and its implications for airport efficiency: An exploratory investigation," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 66-78.

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