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Performance Measures: Frontier Airlines Compared to All Low-Cost Carriers

Performance Measures: Frontier Airlines Compared to All Low-Cost Carriers

2006

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  Frontier Low-Cost** Carrier Average Frontier's 2006 Rank Among 7 Low-Cost Carriers Comment
Measure 1: System Operating Profit/(Loss) per Originating Passenger in Dollars -$1.96 $6.56 4 All of the network*** carriers except Delta and Alaska exceeded the profitability per originating passenger of Southwest
Measure 2: System Operating Expenses (excluding Regional Jet Contract) per Originating Passenger in Dollars $152 $123 5 Operating costs per enplanement for low-cost carriers increased mainly due to double-digit fuel cost increases and higher wages for a maturing work force.
Measure 3: System Operating Expenses (excluding Regional Jet Contract) per Aircraft in Millions of Dollars $21.974 $19.144 5 Low-cost carrier operating expenses per aircraft increased by 24 percent from 2001 to 2006.
Measure 4: Passenger Revenue per Originating Passenger (excluding Regional Jet Contract Revenue) in dollars $142 $122 3 Network and low-cost carriers benefited from fare increases that began in mid-2005. Low-cost carrier revenue per passenger rose 11 percent from 2001 to 2005 and 8 percent from 2005 to 2006.
Measure 5: Full-Time Equivalent Employees* per Aircraft 94 75 6 The industry showed a wide-range of performance, with AirTran's 62 FTEs per aircraft, the fewest of any carrier, about half the 123 FTEs reported by Delta and ATA.
Measure 6: Average Monthly Available Seat-Miles (ASMs) per Full-Time Equivalent Employee* in millions of ASMs 198 232 7 Both the network carriers and low-cost airlines substantially improved productivity with more ASMs generated per FTE from 2001 to 2006.
Measure 7: Average Monthly Revenue Aircraft Minutes per Full-Time Equivalent Employee* in Minutes 219 234 5 The network carriers improved by 40 percent but the low-cost carrier group has a wide advantage over the network airlines in average monthly revenue air minutes per FTE.
Measure 8: Average Monthly Originating Passengers per Full-Time Equivalent Employee* 128 173 5 In 2006, the low-cost carriers generated 173 originating passengers per FTE employee compared to 75 passengers per FTE for the network airlines.
Measure 9: Fuel Cost in Dollars per Originating Passenger $48 $37 5 The low-cost group paid $61 less in fuel costs per originating passenger than the network carriers in 2006.
Measure 10: Average Full-Time Equivalent Employee* Compensation (Salaries + Benefits) per Originating Passenger in dollars $37 $39 4 The financially stronger low-cost carrier group's compensation expenses increased a modest $4 per originating passenger, reflecting wage increases for the group's increasingly senior work force partially offset by sustained operational efficiencies.
Measure 11: Average Annual Full-Time Equivalent Employee* Compensation (Salaries + Benefits) in dollars $56,148 $80,873 7 From 2001 to 2006, low-cost carrier annual compensation costs rose 40 percent while network airline costs were up a more modest 8 percent.

Source: Bureau of Transportation Statistics

* Full-time Equivalent Employee (FTE) calculations count two part-time employees as one full-time employee.

** Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with fewer infrastructure costs and greater expectations of productivity.

*** Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system.