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DOT
60-03
Contact: Bill Mosley
Tel: (202) 366-5571
Monday, July 21, 2003
More
Low-Fare Airlines Enter Long-Haul Markets, According to DOT Report
Low-fare
airlines are serving more longer-distance markets than was common in past years,
according to a report issued today by the U.S. Department of Transportation
(DOT).
A
special section in the third-quarter 2002 Domestic Airline Fares Consumer Report
notes that although low-fare airlines have for many years helped reduce fares in
dense, short-haul markets, some of these carriers have more recently expanded
into long-haul, transcontinental markets. Low-fare carriers that have commenced or expanded their
long-haul services over the past several years include AirTran Airways, ATA
Airlines, Frontier Airlines, JetBlue Airways, Southwest Airlines and Spirit
Airlines. These new services have
provided price competition for incumbent carriers, driving down average fares in
numerous markets.
The
low-fare carriers identified in the DOT report have, as a group, expanded their
long-range service more than their short-haul routes in recent years.
These carriers were operating in 26 percent more long-haul markets in the
third quarter of 2002 than in the same period of 2000, while they expanded their
presence in short-haul markets by only less than 5 percent during this period.
In these long-haul markets, average fares declined about 29 percent over
the two years while the low-fare carriers' passenger traffic increased 179
percent.
The
report issued today, covering July-September 2002, provides information on
airfares for the top 1,000 city-pair markets in the 48 contiguous states.
In
addition to the special section, the report provides the following information:
*
For each city-pair market, the average one-way fare, the number of one-way
passenger trips per day, and the nonstop distance. Also included is fare and market share information for the
airline with the largest market share, and the airline with the lowest average
fare.
*
A city-by-city information summary for the largest cities, showing the number of
passengers, the average fare, average fare per mile traveled (yield) and average
distance traveled.
*
Price and traffic information about city-pair markets that experienced increases
or decreases in average fares of at least 30 percent compared with one year ago.
*
Detailed fare information for the highest and lowest fares for city-pair markets
including the percentage of passengers paying the minimum fare, the maximum fare
and three times the minimum fare.
*
Information on "fare premiums" and "fare discounts - measures of
an airport's average prices compared to those of other similar markets,
demonstrating the impact of low-fare service and hub domination on fare levels -
for 77 cities.
In
order to provide users of this report with more airport-specific detail, DOT has
made a file available on the Internet that provides the information from Table 1
of the report in airport-pair detail for multiple-airport city-pairs.
The full report, and links to the data downloads related to this report,
can be found at http://ostpxweb.dot.gov/aviation/ under "What's Hot."
The
department will continue to issue the domestic airfare report each quarter.
Based upon public input, DOT will consider modifying the information in the
report to provide the fullest consumer benefit.
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