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

Bo Zou and Mark Hansen

Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 69, issue C, 54-74

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.

Keywords: Delay; Airfare; Flight frequency; Airlines; Empirical analysis (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (23)

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DOI: 10.1016/j.tre.2014.05.016

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