ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

North American Airline Passenger Satisfaction Declines: Here’s Why That’s Good News, Says J.D. Power

JetBlue Airways Ranks Highest in First/Business and Premium Economy Segments; Southwest Airlines Ranks Highest in Economy/Basic Economy Segment

The crowds are back at the airport, those empty middle seats are occupied again and airlines in North America are raising ticket prices in response to soaring fuel costs and continued strong leisure travel demand—all at the expense of passenger satisfaction. While dramatically higher prices could harm airline brands in the long term, for now, load volume is continuing to climb and passengers are willing to be assigned a middle seat in exchange for getting out of their houses, according to the J.D. Power 2022 North America Airline Satisfaction Study,SM released today.

“Customer satisfaction with North American airlines climbed to unprecedented highs for all of the wrong reasons during the past two years,” said Michael Taylor, travel intelligence lead at J.D. Power. “Fewer passengers meant more space on airplanes, less waiting in line and more attention from flight attendants. But that business model was simply not sustainable. Now, with volumes surging and some remnants of pandemic-era constraints still in place, passenger satisfaction is in decline—but that’s not really bad news. If airlines can find ways to manage these growing volumes while making some small adjustments to help passengers feel more valued, they should be able to manage this return to ‘normal.’”

Following are some of the key findings of the 2022 study:

  • Overall passenger satisfaction declines sharply across nearly all measures: Overall passenger satisfaction across all three study segments—first/business, premium economy and economy/basic economy—is 798 (on a 1,000-point scale), down more than 20 points from a year ago. Passenger satisfaction with cost, flight crews and aircraft all decline in this year’s study.
  • Premium passengers want their free drinks: Remnants of pandemic-era restrictions, such as the suspension of alcohol service in premium class, has driven sharp declines in passenger satisfaction with food and beverage offerings. This year, food and beverage satisfaction scores decline 38 points in the premium economy segment and decline 12 points in the first/business segment. By contrast, food and beverage satisfaction scores increase 7 points in the economy/basic economy segment.
  • Cost is a driving factor in satisfaction as average ticket cost rises 20%: With higher fuel prices and rising demand driving a 20% increase in average airfares through March 2022, cost continues to be a significant factor in passenger satisfaction. Overall satisfaction with cost & fees declines in the premium economy segment (-66 points), in the economy/basic economy segment (-33) and in the first/business segment (-21).

Study Rankings

JetBlue Airways ranks highest in customer satisfaction in the first/business segment with a score of 878. Alaska Airlines (876) ranks second and Delta Air Lines (862) ranks third.

JetBlue Airways also ranks highest in customer satisfaction in the premium economy segment with a score of 851. Delta Air Lines (837) ranks second and Alaska Airlines (825) ranks third.

Southwest Airlines ranks highest in customer satisfaction in the economy/basic economy segment with a score of 849. JetBlue Airways (828) ranks second and Delta Air Lines (813) ranks third.

See the rank charts for each segment at http://www.jdpower.com/pr-id/2022052.

The North America Airline Satisfaction Study measures passenger satisfaction with airline carriers in North America based on performance in eight factors (in alphabetical order): aircraft; baggage; boarding; check-in; cost and fees; flight crew; in-flight services; and reservation. The study measures passenger satisfaction in three segments—first/business, premium economy and economy/basic economy—and is based on responses from 7,004 passengers. Passengers needed to have flown on a major North America airline within the past month of completing a survey. The study was fielded from March 2021 through March 2022.

For more information about the North America Airline Satisfaction Study, visit https://www.jdpower.com/business/resource/jd-power-north-america-airline-satisfaction-study.

Join the conversation on social media using #AirlineStudy and follow J.D. Power on Facebook, Twitter and LinkedIn.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

Contacts

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.