No link between unhappy passengers and airline profits, study says
Passenger grievances do not impact the financial performance of carriers reports a new study. "We have found no link in customer satisfaction and financial performance,” says Jeffrey Wong, a professor of accounting at the University of Nevada, Reno. “Airlines don’t seem to place a priority on customer service despite the fact that they advertise to the contrary. And yet, some airlines are still profitable.” In 2017, US carriers saw an after-tax net profit of US$15.5b, up from $14b in 2016. Wong said airlines carefully choose the services they provide to customers. “In the end, their profitability does not appear to be dependent upon customer service, based on our analysis,” Wong said. “Given that the airline industry offers a service with few alternatives, the findings of our research may not be surprising." <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-10-04/general/no-link-between-unhappy-passengers-and-airline-profits-study-says
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No link between unhappy passengers and airline profits, study says
Passenger grievances do not impact the financial performance of carriers reports a new study. "We have found no link in customer satisfaction and financial performance,” says Jeffrey Wong, a professor of accounting at the University of Nevada, Reno. “Airlines don’t seem to place a priority on customer service despite the fact that they advertise to the contrary. And yet, some airlines are still profitable.” In 2017, US carriers saw an after-tax net profit of US$15.5b, up from $14b in 2016. Wong said airlines carefully choose the services they provide to customers. “In the end, their profitability does not appear to be dependent upon customer service, based on our analysis,” Wong said. “Given that the airline industry offers a service with few alternatives, the findings of our research may not be surprising." <br/>
