Yahoo Finance Flyer beware: Airline quality rating hits 5 year low
An annual report on the airline industry shows airline performance is declining and those who fly are more frustrated than ever.
The Wichita State University Airline Quality Rating finds air carriers did worse last year in four key categories: on-time performance, involuntary denied boardings, mishandled baggage and customer complaints.
Virgin America (VA) was named top airline for the third year in a row, with Hawaiian Airlines (HA) and Delta (DAL) following close behind.
Yahoo Finance Editor-in-Chief Andy Serwer notes that small touches on an airline can make a big difference.
“Virgin and Hawaiian really differentiate themselves,” he says. “Hawaiian plays Hawaiian music and serves a little poi on the plane and everyone thinks it's great.”
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The worst ratings for the industry come during busy travel times, as described in the AQR chart below. This should come as no surprise, since during peak travel periods planes are filled to capacity, and there are more delays and lost luggage.
Despite the poor reviews airline stocks are soaring, points out Yahoo Finance’s Aaron Task.
“The market is loving what these airlines are doing, obviously fuel costs have come down,” he says. “So it's hard if you're the CEO of an airline…your consumers may be complaining but your shareholders are loving what's happening right now."
Serwer adds that in terms of service, there isn't much that separates the major airlines.
“My theory is that all the big ones are all the same, and one of them is always the worst," he says. "So it remains to be seen whether Delta can maintain that separation, and then United (UAL) and American (AAL) have some work to do.”
