Publications

Description

Authors: Li Zou, Aisling Reynolds-Feighan, Chunyan Yu

Abstract: We develop two air traffic (opens in a new window)seasonality indices to complement the traditional Gini index. These measurements are adopted to assess the variability of air traffic over time and across the route network of low-cost carriers (LCCs) in Europe and the United States and to estimate the impact of (opens in a new window)seasonality on fleet utilization. Using panel data for nine LCCs in Europe and the United States from 2004 to 2017, we find that higher seasonality results in lower fleet utilization after controlling for stage length, network size, aircraft size, and fleet standardization. Moreover, we find that seasonality is negatively associated with spatial and climate zone diversification of airline route networks. These results suggest that airlines may be able to reduce seasonal traffic variability through diversifying their networks geographically and consequently mitigating the negative fleet utilization impact.