|Southwest||Low-Cost** Carrier Average||Southwest's 2006 Rank Among 7 Low-Cost Carriers||Comment|
|Measure 1: System Operating Profit/(Loss) per Originating Passenger in Dollars||$10.94||$6.56||1||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||$95||$123||1||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||$17.614||$19.144||2||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||$100||$122||7||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||69||75||3||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||242||232||3||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||255||234||2||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*||223||173||1||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||$27||$37||1||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||$100,254||$80,873||1||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.