US Airlines Struggle with High Cancelation Rates in January

By Ivan PetrenkoJan 29, 2024 21:34 PMNews
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Plane in the sky
Plane in the sky. Source: unsplash

January 2024 has been a challenging month for the US airline industry, with significant disruptions due to the grounding of the Boeing 737 MAX 9 and adverse winter weather conditions. This period has seen a noticeable increase in flight cancelations, particularly affecting Alaska Airlines and United Airlines.

Boeing 737 MAX 9 Grounding Impacts Alaska and United

In the first three weeks of January, all major US airlines, including American Airlines, Alaska, JetBlue, Delta Air Lines, United Airlines, and Southwest Airlines, experienced cancelation rates above 1%, as reported by aviation data and analytics provider OAG. The grounding of the Boeing 737 MAX 9, following an incident on January 5th, was a primary contributor to these disruptions. Alaska Airlines, with nearly 25% of its fleet comprised of MAX 9 aircraft, was the hardest hit, recording cancelation rates soaring above 10%. United Airlines, also operating several MAX 9s, faced the second-highest cancelation rate due to the grounding.

Weather Woes and Fleet Grounding Wreak Havoc

Alaska Airlines encountered additional challenges on January 17th and 18th, with cancelation rates increasing above 20% due to severe weather conditions. United Airlines similarly experienced operational setbacks, although to a lesser extent compared to Alaska. Both airlines have resumed flights with the MAX 9 after a three-week hiatus and following FAA clearance. This situation has prompted a reevaluation of future orders for the larger 737 MAX 10 model by United.

Comparative Analysis and Revenue Impact

Despite these challenges, JetBlue Airways emerged with the least number of cancelations, outperforming even Atlanta-based Delta Air Lines, known for its punctuality. The average cancelation rate for six major US airlines was over 4.30% for January, a stark contrast to the remarkably low rate of 0.8% during the December holiday travel season, as per the US Department of Transportation. These disruptions have likely led to a decline in revenue figures for the affected airlines, particularly Alaska and United, which have been directly impacted by the MAX 9 issues.

Conclusion and Moving Forward

The month of January 2024 serves as a reminder of the fragility of airline operations in the face of unexpected events like aircraft groundings and severe weather. As the industry recovers from these setbacks, airlines are poised to reassess their strategies and fleet compositions to better navigate future challenges.

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