Competition
United competes primarily with large carriers like American Airlines (AMR) and Delta Air Lines Inc. (DAL) but also competes with low-cost carriers like Southwest Airlines Company (LUV), both domestically and internationally. Because of high fuel and other operating expenses, United has the highest Cost per Available Seat Mile in the airline industry, 13.5 cents.[1] To combat its increasing operating expenses, United has implemented several strategies prevalent throughout the airline industry including cutting food and beverage services and charging customers extra fees to check in baggage. In May 2008, United instituted a $25 service fee to check in a second piece of luggage, which the company believes will generate more than $100 annually in cost savings and new revenue.[2] In Q3, United increased this fee to $50 per baggage, in attempts to further insulate itself from increasing operating costs.[1]
| Airline
| Fleet Size[3]
| Annual Departures (2007) (Thousands)[3]
| Available Seat Miles (Millions)[3]
| Passengers Enplaned (Thousands)[3]
| Fuel Cost per Gallon[4]
| Cost per Available Seat Mile (CASM)[3]
| 2007 Revenue (Millions)[3]
| Operating Margin[3]
| Net Income (Millions)[3]
|
| AirTran Holdings (AAI)
| 137
| 262
| 22,680
| 23,741
| $2.23
| $.0957[5]
| $2,309
| 5.9%
| $52
|
| American Airlines (AMR)
| 655
| 769
| 169,856
| 98,165
| $2.12
| $.114[6]
| $22,833
| 3.1%
| $356
|
| Continental Airlines (CAL)
| 365
| 411
| 99,061
| 48.974
| $2.18
| $.108[7]
| $14,105
| 4.4%
| $460
|
| Delta Air Lines Inc. (DAL)
| 446
| 553
| 127,323
| 72,924
| $2.24
| $.119[8]
| $19.239
| 5.2%
| $579
|
| JetBlue Airways (JBLU)
| 134
| 196
| 32,148
| 21,304
| $2.09
| $.0838[9]
| $2,843
| 6.0%
| $18
|
| Southwest Airlines Company (LUV)
| 520
| 1,162
| 99,636
| 101,910
| $1.70
| $.091[10]
| $9,861
| 8%
| $645
|
| United Airlines (UAUA)
| 460
| 551
| 141,838
| 68,362
| $2.18
| $.135[11]
| $20,049
| 4.8%
| $349
|
| US Airways Group (LCC)
| 356
| 525
| 75,790
| 57,829
| $2.20
| $.113[12]
| $12,055
| 4.3%
| $350
|
Introduction and Overview | Analysis and Trends | Competition
References
- ↑ 1.0 1.1 UAUA Q3 Earnings Press Release 10/21/2008
- ↑ UAUA 2007 10-K, Item 7, pg. 32
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Air Transport Association 2008 Economic Report Pg. 23
- ↑ Wikinvest Fuel Cost per Gallon Page
- ↑ AAI Wikinvest Page
- ↑ AMR Wikinvest Page
- ↑ CAL Wikinvest Page
- ↑ DAL Wikinvest Page
- ↑ JBLU Wikinvest Page
- ↑ LUV 2008 10-K, Item 6, pg. 19
- ↑ UAUA Wikinvest Page
- ↑ LCC Wikinvest Page
