Impact of September 11 on Airlines

Contact BTS 1-02 David Smallen 202-366-5568

Wednesday, January 9, 2002 -- The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) today released its monthly Transportation Indicators report showing that airline employment and revenues, as well as air traffic, declined significantly following the September 11 terrorists attacks.

The December Indicators report documents the far-reaching impact of the events of September 11 on the nation’s airlines, with declines in passengers, flights, freight, load factors and other measures of performance. Although these indicators show dramatic drops for the month overall, the declines caused by the September 11 terrorist attack only took place in the last two-thirds of the month.

Dr. Ashish Sen, BTS Director, said, "Transportation Indicators provides the data to show how the events of September 11 had a major impact on our transportation system. Through this monthly report, we can continue to monitor the nation’s transportation system.”

According to the report:

• Employment in air transportation fell 3.6 percent in November, following a 2.8 percent decline in October. Employment in transportation services such as tour and travel agencies and forwarding services fell 2.7 percent in November.
• There were nearly 18 percent fewer scheduled flights in October than in October 2000. Of those flights, 85 percent arrived on time, compared to 76 percent in October 2000.
• Large air carriers’ operating revenues fell 17 percent in the third quarter compared to the same quarter of 2000, while operating expenses fell by only 1 percent.

Comparisons of this past September to September 2000 found:

• Revenue passenger miles were down 32 percent for domestic and 29 percent for international flights.
• Available seat miles were down 19 percent for domestic and 15 percent for international flights.
• Revenue ton-miles were down 24 percent for domestic and 31 percent for international flights.
• Available ton-miles were down 13 percent for domestic and 21 percent for international flights.
• Passenger load factors were down 10 percent for domestic flights and 13 percent for international flights.
• Aircraft revenue departures were down 21 percent for domestic and 19 percent for international flights.
• Revenue enplanements were down 34 percent for domestic and 27 percent for international flights.

The BTS Transportation Indicators report is a monthly update of critical transportation information that details the impact of transportation on the nation’s economy and society.

Transportation Indicators provides information on more than 100 trends in the areas of safety, mobility, economic growth, the human and natural environment, and national security. The monthly report, which is available at www.bts.gov, provides information to address specific transportation issues and to assist in the effort led by BTS to make transportation information more accurate, reliable and timely. Updated reports will be available on the BTS website at the end of every month.

Other trends highlighted in this month’s report are:

• Producer prices for rail freight transportation fell in November, but were still up more than 3 percent since November 2000, after a sharp rise in October. This was the second highest 12-month increase in the five years of data tracked in Indicators.
• Producer prices of highway and street construction declined 3 percent in November from November 2000, the largest 1-year decline since November 1991.
• Public spending on highway and street construction dropped slightly in October, down .65 percent from a recent peak in June.
• Consumer prices for transportation services declined 1.5 percent from October to November.
• Advance retail sales of motor vehicles dropped nearly 13 percent in November, after a sharp rise in October.
• Manufacturers’ new orders rose 7 percent in October after falling 6 percent in September.
• Manufacturers’ new orders for future delivery of transportation equipment jumped 39 percent in October after falling 6 percent in September.
• Highway vehicle miles traveled rose slightly from August to September but were still down 1 percent or nearly 3 billion miles from 2000 after a drop in June of this year.
• Railroad accidents/incidents fell to a 10-year low in September— 22 percent lower than in September 2000.
• Net petroleum imports fell slightly in October, but remained 4 percent higher than in October 2000.
• Retail gasoline prices dropped 3 percent in the week ending Dec. 17—their lowest level since Feb. 22, 1999.
• Motor vehicle fuel economy rose in 2000 for both passenger cars and light trucks— about 3 percent each over 1999—according to the latest data from the Department of Energy.
• U.S. international trade continued to decline in September—imports were down more than 2 percent and exports were down almost 7 percent from August.
• The value of U.S. truck trade with Canada and Mexico declined 14 percent and 17 percent respectively in September compared to the previous year.

Continual updating of information on trends will help in developing forecasts for the future, both within the department and outside. The monthly report will also help transportation decision-makers spot changes that might require rapid action.