Highlights We examine the empirical causal relationship between delay and airfare and flight frequency in the U.S. air transportation system. Higher delay at origin, destination, and connecting airports leads to higher airfare. Higher delay has an upward effect on flight frequency. Delay effects on both fare and frequency are in general small. Counterfactual delay reduction scenarios could result in fare reduction benefits in billion dollars each year.

    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.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

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


    Contributors:
    Zou, Bo (author) / Hansen, Mark (author)


    Publication date :

    2014-05-28


    Size :

    21 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





    Airfare Distribution by Trip Purpose

    Gosling, Geoffrey D. / Landau, Steven / Adler, Thomas et al. | Transportation Research Record | 2016


    Weekend effect in airfare pricing

    Mantin, B. | Online Contents | 2010


    The impact of income on airfare pricing

    Jou, Rong-Chang / Lin, Chi-Chih / Wu, Kun-Feng | Taylor & Francis Verlag | 2013


    Weekend effect in airfare pricing

    Mantin, Benny / Koo, Bonwoo | Elsevier | 2009