Airlines Fail in Newly Released Report Card

April 2, 2007 — -- A new study of the airline industry shows that, in four categories, airlines performed worse in 2006 than they did in 2005.

The study evaluated the airlines' total number of consumer complaints, on-time arrival records, mishandled baggage and the number of passengers bumped because of overbooking. It showed that travelers who were headed to the airport anytime soon could be in for a frustrating flight.

For people who travel frequently, the new study proves their worst fears: more delays, more passengers being bumped off flights and more lost bags.

"This year, for the third year in a row, industry lost ground, got worse than it was a year ago," said Dean Headley, co-author of the Airline Quality Rating study.

The annual report found that 10 airlines had worse on-time arrivals than the year before and that airlines lost or mishandled more baggage. Last year 6.5 bags were lost or damaged for every 1,000 passengers.

"This report is unfortunately expected," said ABC News aviation consultant John Nance.

Nance said it would be difficult for airlines to improve these service problems without raising ticket prices so they can afford to make changes to their service.

"The system is maxed out … for those who think that a $99 flight from L.A. to New York is standard. It costs the airlines $400 for that seat. It's not realistic."

United and US Airways tied for the most customer complaints. Atlantic Southeast rated worst for delays, arriving on schedule only 66 percent of the time.

Some airlines fared well. Southwest had the lowest complaint rate, and Hawaiian Airlines was on time about 94 percent of the time.

The study did not include the recent rash of delays and cancellations caused by severe winter storms that left outraged JetBlue passengers sitting on the runway for up to 10 hours

Nance said the tough price competition between the airlines put some in a difficult position.

"Individual airlines can't do much to make this better if they want to stay in business," Nance said. "Other airlines [are] lapping at their heels, charging less for the product than it costs to produce."

In order for things to get better, experts say the government has to take control of regulating the competition among airlines and upgrading air traffic control systems.