The Effects of Schedule Disruptions on the Economics of Airline Operations

Airlines depend on their ability to meet the requirements of their published schedules. However, various events ranging from severe weather to the failure of a crewmember to report for duty inhibit their ability to always satisfy their schedules. In some instance, as in the case of thunderstorms, only a single airport may be affected for a few hours. In others, a large weather system can disrupt airline schedules over thousands of square miles for several days. This paper examines the economic effects of disruptions to schedules at two levels. First, it examines the costs incurred by the airlines that resulted from severe weather affecting operations at Boston, MA from 8-10 October 1998. Second, the annual costs of disruptions to airline operations in the United States during 1998 were estimated and their significance discussed. This paper shows that regular events that disrupt airline schedules are an inescapable element of airline operations. In some cases the effects of these disruptive events are minimal. However, disruptions to airline operations can become severe, causing the airlines to delay, cancel or divert substantial numbers of flights and imposing substantial costs on them.