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The Economic Cost of Airline Flight Delay

Author

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  • Everett B. Peterson
  • Kevin Neels
  • Nathan Barczi
  • Thea Graham

Abstract

Flight delay has become widespread in the United States with nearly one-quarter of all flights delayed by more than 15 minutes in 2007. This paper determines the economic costs of delayed flights, including the direct effects of increased airline cost and the indirect effects of lost labour productivity for business travellers, an opportunity cost of time for leisure travellers, and changes in consumer spending on travel and tourism goods and services. US net welfare would increase by $17.6 billion for a 10 per cent reduction in flight delay and by $38.5 billion for a 30 per cent reduction. © 2013 LSE and the University of Bath

Suggested Citation

  • Everett B. Peterson & Kevin Neels & Nathan Barczi & Thea Graham, 2013. "The Economic Cost of Airline Flight Delay," Journal of Transport Economics and Policy, University of Bath, vol. 47(1), pages 107-121, January.
    • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:1:p:107-121
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    Cited by:

    1. Fageda, Xavier & Flores-Fillol, Ricardo, 2016. "How do airlines react to airport congestion? The role of networks," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 73-81.
    2. Ahmadi, Sobhan & Akgunduz, Ali, 2023. "Airport operations with electric-powered towing alternatives under stochastic conditions," Journal of Air Transport Management, Elsevier, vol. 109(C).
    3. Karanki, Fecri & Bilotkach, Volodymyr, 2023. "Capacity Utilization of U.S. Airports: A Data Envelopment Analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 177(C).
    4. Truong, Dothang, 2021. "Using causal machine learning for predicting the risk of flight delays in air transportation," Journal of Air Transport Management, Elsevier, vol. 91(C).
    5. Li, Max Z. & Ryerson, Megan S., 2019. "Reviewing the DATAS of aviation research data: Diversity, availability, tractability, applicability, and sources," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 111-130.
    6. Lee, Kangoh, 2023. "Airline operational disruptions and loss-reduction investment," Transportation Research Part B: Methodological, Elsevier, vol. 177(C).
    7. Smith, Andrew S.J. & Ojeda Cabral, Manuel, 2022. "Is higher quality always costly? Marginal costs of quality: Theory and application to railway punctuality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 157(C), pages 258-273.
    8. Arora, Swapan Deep & Mathur, Sameer, 2020. "Effect of airline choice and temporality on flight delays," Journal of Air Transport Management, Elsevier, vol. 86(C).
    9. Altringer, Levi & Zahran, Sammy & Shwiff, Stephanie A. & Begier, Michael J. & Anderson, Aaron, 2022. "Spillover delay effects of damaging wildlife strike events at U.S. airports," Economics of Transportation, Elsevier, vol. 30(C).
    10. Wang, Yan-Jun & Zhu, Yun-Feng & Zhu, Chen-Ping & Wu, Fan & Yang, Hui-Jie & Yan, Yong-Jie & Hu, Chin-Kun, 2019. "Indicator of serious flight delays with the approach of time-delay stability," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 518(C), pages 363-373.
    11. Tsegai O. Yhdego & An-Tsun Wei & Gordon Erlebacher & Hui Wang & Miguel G. Tejada, 2023. "Analyzing the Impacts of Inbound Flight Delay Trends on Departure Delays Due to Connection Passengers Using a Hybrid RNN Model," Mathematics, MDPI, vol. 11(11), pages 1-24, May.
    12. Y. X. Lee & Z. W. Zhong, 2016. "A study of the relationship between adverse weather conditions and flight delay," Journal of Advances in Technology and Engineering Research, A/Professor Akbar A. Khatibi, vol. 2(4), pages 112-117.
    13. van Schilt, Isabelle M. & van Kalker, Jonna & Lefter, Iulia & Kwakkel, Jan H. & Verbraeck, Alexander, 2024. "Buffer scheduling for improving on-time performance and connectivity with a multi-objective simulation–optimization model: A proof of concept for the airline industry," Journal of Air Transport Management, Elsevier, vol. 115(C).

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