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Performance Measures: Alaska Airlines Compared to All Network Carriers

Performance Measures: Alaska Airlines Compared to All Network Carriers

First Quarter 2007

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  Alaska Network** Carrier Average Alaska's 2007 Rank Among 7 Network Carriers Comment
Measure 1: System Operating Profit/(Loss) per Originating Passenger in Dollars -$6.74 $13.52 7 Network carriers Northwest, Delta, US Airways and American all had operating profits per originating passenger higher than America West, the leading low cost carrier.
Measure 2: System Operating Expenses (excluding Regional Jet Contract) per Originating Passenger in Dollars $255 $331 2 The network carriers aggressive downsizing in operations reduced other costs, partially offsetting the rise in fuel expense.
Measure 3: System Operating Expenses (excluding Regional Jet Contract) per Aircraft in Millions of Dollars $5.797 $6.836 2 Network operating expenses per aircraft increased 24 percent from 2002 as that group moved towards more international flying which requires larger and more expensive aircraft.
Measure 4: Passenger Revenue per Originating Passenger (excluding Regional Jet Contract Revenue) in dollars $200 $302 7 Network and low-cost carriers benefited from fare increases that began in mid-2005. Network carrier revenue per passenger rose 2 percent from 2002 to 2005 and 18 percent from 2005 to 2007.
Measure 5: Full-Time Equivalent Employees* per Aircraft 81 99 2 The industry showed a wide-range of performance, with AirTran's 59 FTEs per aircraft, the fewest of any carrier, about half the 113 FTEs reported by United.
Measure 6: Average Monthly Available Seat-Miles (ASMs) per Full-Time Equivalent Employee* in millions of ASMs 202 212 5 Both the network carriers and low-cost airlines substantially improved productivity with more ASMs generated per FTE from 2002 to 2007.
Measure 7: Average Monthly Revenue Aircraft Minutes per Full-Time Equivalent Employee* in Minutes 198 159 1 The network carriers improved by 31 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* 94 69 1 In 2007, the low-cost carriers generated 166 originating passengers per FTE employee compared to 69 passengers per FTE for the network airlines.
Measure 9: Fuel Cost in Dollars per Originating Passenger $62 $93 1 The low-cost group paid $55 less in fuel costs per originating passenger than the network carriers in 2007.
Measure 10: Average Full-Time Equivalent Employee* Compensation (Salaries + Benefits) per Originating Passenger in dollars $78 $100 2 The financially stronger low-cost carrier groups compensation expenses increased a modest $3 per originating passenger, reflecting wage increases for the groups increasingly senior work force partially offset by sustained operational efficiencies.
Measure 11: Average Annual Full-Time Equivalent Employee* Compensation (Salaries + Benefits) in dollars $87,890 $83,374 2 From 2002 to 2007, low-cost carrier annual compensation costs rose 43 percent while network airline costs declined 0.8 percent.

Source: Bureau of Transportation Statistics

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

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

*** 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.