![]() Flight delays may also be exacerbated by COVID-related protective measures at airports that may slow down passenger onboarding and offboarding or increase the time it takes to clean or disinfect aircrafts between flights. ![]() If the reduction in capacity outweighs the decrease in traffic, relatively speaking, OTP may worsen. Employment in the industry fell from approximately 512,000 workers in March to roughly 380,000 in June 2020 ( Sainato, 2020). Almost all airlines announced job cuts and/or reduced work schedules. Airlines grounded their fleets more or less completely due to the imposed travel restrictions while U.S. In response to the sharp fall in air travel, airlines and airports cut capacity ( Sobieralski, 2020). On the other hand, the COVID-19 outbreak has struck airports severely. The excess capacity releases the stress that may have prevailed in the absence of COVID-19 at congested airports. This creates a situation of excess capacity at airports. On the one hand, COVID-19 caused a severe decrease in airline traffic across all routes ( Dube et al., 2021, Maneenop and Kotcharin, 2020). We argue that the impact of COVID-19 on flight delays arises from the relative size of COVID-19 shocks to both airport/airspace capacity and air travel demand. Third, we examine whether the OTP effects of COVID-19 are sensitive to how OTP is measured.įlight delays are the result of imbalances between airport/airspace capacity and air travel demand ( Skaltsas, 2011). Second, we control for hour of the day, day of the week in addition to factors that are likely to influence OTP through a series of fixed effects models. First, we use high frequency (daily) data to evaluate the impact of COVID-19 on flight delay. In our empirical analysis, we make the following contributions. Airlines recognize the importance of on-time performance (OTP) and have proudly brandished their OTP ranking as a powerful marketing tool. Consumers care about flight on-time performance and in some instances are willing to pay for it ( Yimga and Gorjidooz, 2019, Gayle and Yimga, 2018). Second, on-time performance is a clear-cut measure of product quality that has been used by several studies ( Prince and Simon, 2009, Mazzeo, 2003). First, the sharp decrease in domestic air traffic and the uncertainty surrounding the COVID-19 pandemic make the airline industry a suitable candidate to answer important questions about product quality amid a pandemic. In our view, this research question is worthy on two accounts. This paper examines the impact of COVID-19 on airline on-time performance. For comparison, that number represents a 96% decline from 2.6 million passengers on the same day the year before. ![]() airports on April 16, 2020, at the onset of the pandemic. ![]() airline industry have been particularly damaging, with projections that seem to indicate that the industry is unlikely to return to 2019 passenger volumes before 2023–2024 ( Airlines for America, 2021).ĭata from the Transportation Security Administration (TSA) indicate that only about 95,000 passengers were screened across U.S. 4Įven though the COVID-19 pandemic had dire economic outcomes across industries, its effects on the U.S. More recently, a budget resolution for a $1.9 trillion stimulus package was approved on February 27, 2021. Congress to deliver immediate economic support to workers, families, and small businesses. In response to this economic downturn, the Coronavirus Aid, Relief, and Economic Security (CARES) Act 2Īnd the Coronavirus Response and Relief Supplemental Appropriations Act 3 economy lost 22 million jobs resulting in a sharp increase in the unemployment rate to 14.7% ( Handwerker et al., 2020). “… the unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions.” 1īetween February and April 2020, the U.S. ![]() economy officially entered a recession in February 2020. In the United States, the National Bureau of Economic Research determined that the U.S. The virus rapidly spread beyond China causing an unprecedented global health crisis that led to economic hardship and disruption across many industries. On December 9, 2019, the first case of coronavirus 2019 (COVID-19) was recorded in Wuhan, China ( Huang et al., 2020). ![]()
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