Flight delay impact on airfare and flight frequency: A comprehensive assessment |
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| Institution: | 1. Department of Civil and Materials Engineering, University of Illinois at Chicago, 842 West Taylor Street, Chicago, IL 60607, USA;2. Department of Civil and Environmental Engineering, University of California at Berkeley, 107 McLaughlin Hall, Berkeley, CA 94720, USA;1. Escola d’Enginyeria de Telecomunicació, i Aeronàutica de Castelldefels, Universitat Politècnica de Catalunya, Spain;2. Department of Planning and Transport, University of Westminster, London, United Kingdom;1. Department of Quantitative Methods for Economics & Business, University of Las Palmas de Gran Canaria, Spain;2. Department of Quantitative Methods for Economics & Business, University of Granada, Spain;3. Department of Quantitative Methods in Economics and TiDES Institute, University of Las Palmas de Gran Canaria, Spain;1. University of California, Berkeley, Berkeley, CA 94720, United States;2. University of South Florida, Tampa, FL 33620, United States;3. Federal Aviation Administration, Washington, DC 20591, United States |
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| 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. |
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| Keywords: | Delay Airfare Flight frequency Airlines Empirical analysis |
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