Passenger Transportation - Tourism: Principles, Practices, Philosophies - page 100

TABLE 5.1 Top Nine U.S. Airlines by Passenger Revenue, 2009

Airline Passenger Revenue ($000,000)

1 Delta $18,522

2 American 15,037

3 United 11,910

4 Southwest 9,892

5 Continental 9,244

6 U.S. Airways 6,752

7 Jet Blue 2,928

8 Alaska 2,439

9 Air Tran 2,089

Source: Business Travel News.

Gemini Air Cargo, GoJet Airlines, Hawaiian Airlines, Horizon Air, Kalitta Air, Mesaba Airlines, Miami Air
International, Midwest Airlines, North American Airlines, Omni Air International, Pinnacle Airlines, PSA
Airlines, Southern Air, Spirit Airlines, Sun Country Airlines, USA 3000 Airlines, USA Jet, and World
Airways. There are about a hundred regional airlines with annual revenues under $100 million.
The top nine U.S. airlines by passenger revenue are shown in Table 5.1. The table shows that Delta
was the largest carrier in 2009 following its merger with Northwest. The United/Continental merger
in 2010 has made United the current largest carrier in the United States by passenger revenue. See
Table 5.1 and add the United and Continental figures together to see the scope of this merger.
It is interesting to compare Tables 5.1 and 5.2. Table 5.2 shows the top world airlines based on
passenger revenue. Note that U.S. airlines occupy five of the top ten spots. This will change to four
when the United-Continental merger is finally completed.
One of the best sources of data on the U.S. airline industry is an annual report published by the Air
Transport Association of America, 1301 Pennsylvania Avenue NW, Suite 1100, Washington, D.C.
20004. The International Air Transport Association (see Chapter 4) makes forecasts and publishes
financial and traf c statistics on the world airline industry. Its World Air Transport Statistics is in its
fty- fth edition and is reported to be the single most timely and authoritative source of international
airline data.
Air Transport World (ATW) publishes an annual World Airline Report that typically appears in its
July issue. The report is available from ATW at [phone] or www.atwonline.com . The compre-
hensive report covers the world s top 25 airlines, world airline financial statistics, Africa, Asia/Paci c,

Canada, Europe, Latin America/Caribbean, Middle East, U.S. Majors, U.S. Nationals, U.S. Cargo Carriers,
U.S. Regional/Specialty Carriers, and World Airline Fleets. Air Transport World is published monthly by
Penton Media, Inc.
Another useful source of information on the airline industry is the U.S. Federal Aviation Administra-
tion. Consumer protection is the responsibility of the Department of Transportation.

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Deregulation, Alliances, and Consolidation

Under deregulation, the airline industry has undergone dramatic change. It is hard to believe that
33 years have gone by since U.S. airline deregulation was passed in October 1978. Looking back, we
can see that it has led to signi cant consolidation, hub systems, low airfares in competitive situations,
and high airfares where competition is lacking.
The future foresees more concentration as consolidations and a wave of have taken place

and more are proposed. Alliances now involve the six largest carriers in the United States. International

alliances