The High Costs of Disruptions

The High Costs of Disruptions

Issue 5

Passengers expect to reach their destination on time, but sometimes disruptions happen — to airlines of all sizes. When they occur, the impact can be exponential. In 2016 alone, $29 billion was lost to airlines worldwide for delays, cancellations and diversions. And it’s a problem that is not going away. In fact, recent year-over-year growth was at eight percent.

During the peak travel periods of July and December, disruptions are occurring even more frequently with year-over-year growth of approximately 11 percent. Higher load factors and inclement weather play their part in this jump in growth. 

On top of dealing with multiple affected systems and potential brand damage, there are significant costs associated with disruptions. Below are some of the average disruption costs airlines incur, based on aircraft type.

But the real question is, what can airlines do about it? They can become better prepared. Disruptions are inevitable. However, the speed at which an airline becomes aware of and responds to disruptions can make a huge difference. More time “in the know” means more time to react.

One way of discovering disruptions early is through the power of social media. In aviation, we see the impact of unhappy passengers venting their frustrations to the entire world due to delayed flights, lost baggage and poor customer service. Within the past several years, airlines have moved beyond using social media simply for pushing passenger notifications, and instead also use it as a customer service channel through two-way communications. As a next step in the social media evolution, Jeppesen has been conducting research on how information shared by passengers can be used to identify trends for more informed decision-making. By viewing social media posts that reference flight delays, airlines, airports and weather, you will be able to gather valuable information before official alerts and NOTAMs are issued.

There’s no way to completely avoid disruptions, but with the right information and powerful software, you can see and address down-line impacts before they occur. For more than 80 years, Jeppesen has been helping aviation professionals reach their destinations safely and efficiently. Today, we build on those roots by offering an ever-expanding array of innovative informational products, services and software. We want to empower you with the real-time information you need to proactively manage your operation.

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