The new American Customer Satisfaction Index (ACSI) study of airline quality showed JetBlue Airways Corp. (NASDAQ: JBLU), a perennial favorite with consumers, ranked highest among airlines. Spirit Airlines Inc. (NASDAQ: SAVE), often called the most hated carrier, ranked last.
With 100 as a perfect score, JetBlue received a rating of 80 and was joined by Southwest Airlines Co. (NYSE: LUV), which had the same score. JetBlue lost one point, while Southwest gained three, compared to the 2015 ratings. The only good news for Spirit, which received a rating of 62, is that this rose from 2015’s score of 54.
The largest carriers rated in the middle based on total grades. American Airlines Group Inc. (NASDAQ: AAL) rated 72, Delta Air Lines Inc. (NYSE: DAL) at 71, and United Continental Holdings Inc. (NYSE: UAL) at 68.
The industry overall had a slight improvement in consumer perception. Its grade rose from 69 in 2015 to 72 this year. However, the airline industry ranks relatively low among all the industries covered by ACSI, something the research firm blames on small seats, bag fees and an end to free meals.
Whatever customer service skills airline managements may have added in a year, some trends beyond management helped the industry. ACSI experts pointed out:
After years of high and mostly increasing oil prices, jet fuel costs have dropped and may remain lower for the foreseeable future. Aside from labor, fuel accounts for the largest operating expense for airlines, and lower oil prices have helped return the industry to profitability. Travelers appear to be benefiting as airlines attempt to improve passenger service. New planes, more amenities, improved terminals, and increased pay for employees all provide an incremental change for the better in the passenger experience. Likewise, airfares have come down due to lower fuel costs and passengers are getting better value for money. According to the Department of Transportation, inflation-adjusted fares are at their lowest level in five years
The ACSI methodology:
The ACSI Travel Report 2016 on airlines, hotels, and Internet travel services is based on interviews with 6,913 customers, chosen at random and contacted via email between March 5 and March 31, 2016. For each industry, customers are asked to evaluate their recent experiences with the largest companies in terms of market share, plus an aggregate category consisting of “all other”—and thus smaller—companies
Perhaps the best lesson from the study is that, while people dislike airlines, they have no other choices.
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