How do low-cost airlines decide when to schedule their flights?

   

One might think that scheduling flights is as simple as picking a time of day for a flight to depart and return, and simply selling tickets for those services.

The truth, however, is that selecting when specifically during the day to operate a given flight can mean the difference between a successful route and one where the competition can capture the vast majority of passenger demand.

The easiest way to understand the importance of scheduling flights is by looking at the difference between business travelers and leisure travelers.

Business travelers, for the most part, fly out early in the week and fly home late in the week, meaning that their flight schedules will need to revolve around the time of day at which it is most convenient for them to be traveling.

If a consultant is traveling from New York to Dallas for a meeting on Tuesday at 10 AM, they will need to have a flight arriving in Dallas at least 45 minutes before the meeting, requiring an early morning departure from New York.

If, say, Delta Air Lines offers this kind of service, but American Airlines does not, Delta would likely be in a better position to capture business traveler demand on this example route.

While there may be other considerations for business travelers (such as environmental impact and to a lesser extent cost), convenience is the most important factor driving these passengers to choose the flights they do.

There are a few fundamental differences to note between the operating models of full-service airlines like United Airlines, Delta Air Lines, and American Airlines and those of low-cost carriers like Frontier Airlines, Southwest Airlines, and Allegiant Air.

While we have already discussed the differences between these two kinds of airline businesses here at my, it is important to note that the two carrier types each have their own kind of core customer, one with very different expectations and demands.

Across the board, passengers looking to fly on a low-cost airline are looking for the best deal, but one must be careful not to confuse this with the lowest possible ticket price.

Conventional wisdom would suggest that, if passengers on budget airlines were looking for just the cheapest tickets, that scheduling would be irrelevant and would have no impact on passenger decisions whatsoever.

A flight that arrives at midnight requires passengers to essentially spend an extra night in a hotel, without actually getting much out of it.

As a result, passengers would likely be willing to pay a bit more for a morning flight, as they would be able to save the money they would otherwise spend staying an extra night in a hotel.

Therefore, it is important to note that there are several other considerations for passengers that extend beyond simply the ticket prices and flight schedules can be a key piece of this puzzle.

Legacy carriers typically operate hub-and-spoke networks, meaning their flights operate into and out of a central hub.

As a result, the schedule can be relatively simple, as a given aircraft's daily schedule will likely consist of just a few flights in and out of the same airport, something that might repeat throughout the week.

Budget airlines, however, operate point-to-point models, which involve flying directly between higher-demand destinations, and often doing so far less often or operating on a twice or once-weekly frequency.

As a result, airlines have to create more niche schedules, ones which might see aircraft operating outside the typical peak periods.

Typically, legacy carriers have massive fleets and will have slightly lower fleet utilization rates than budget airlines.

They will typically schedule flights during the peak demand periods and will have large "banks" of flights that arrive and depart from their hubs around the same time, making connections efficient.

According to Travel and Technology Solutions, these budget airlines will typically operate outside of peak hours, capitalizing on lower fees and more inexpensive gate slots.

As a result, low-cost carriers will schedule flights to optimize for the lowest possible expenses, hoping passengers won't mind the more inconvenient time in exchange for a hefty discount.

Overwhelmingly, legacy airlines serve more traditional travel demographics, while low-cost airlines appeal more to budget-conscious travelers, which overwhelmingly skew younger.

Generation Z does not travel the way older generations did, and the way they choose to allocate travel expenses shifts the way budget airlines attempt to capture their business.

According to Forbes, whether it be seeking out the best deal on a luxury travel experience or finding a unique niche hotel, Generation Z seeks to make the most of its travel experience.

As a result, they are more willing than ever to try and take earlier flights in order to make the most of their first day on vacation.

It is for this reason that some of the earliest departures from airports to leisure destinations are often from budget airlines. Take a look at the following two routes, for example:

  • Newark Liberty International Airport (EWR) to Fort Lauderdale International Airport (FLL)
  • Newark Liberty International Airport (EWR) to Miami International Airport (MIA)

Both of these are high-demand leisure travel routes between the New York City area and popular vacation destinations in the state of Florida.

Despite being served by both United Airlines and American Airlines in the case of Miami and just United in the case of Fort Lauderdale, the earliest departures to each of these destinations (both early morning flights around 5 AM) are offered by Spirit Airlines.

If you're looking to fly on a legacy carrier, you'll have to wait at least another hour.