The indispensable subscription-only Airline Weekly ran numbers looking at year-over-year revenue and costs for various airlines in the third quarter, and the difference between those figures, rank ordering carriers.
United and American outperformed Delta by this measure — they saw their costs decline more (11% and 12%) than Delta (7%) though their revenue declined more (-2% and -4% versus -1%). American is certainly under revenue pressure from Spirit, which has it’s own problems — a 2% increase in costs despite declining fuel prices.
The gap between Allegiant – at the very top of the list – and stagnating Spirit underscores that there reaches a point where ultra low cost carriers are no longer well-positioned to cherry pick routes and must face serious competition from larger airlines.
