J.D. Power Shows Airlines Slip

Airline customer satisfaction has deteriorated to its lowest level in three years, according to a J.D. Power and Associates survey on North American carriers.

J.D. Power said declining customer service, "rather than high fares and additional charges for amenities," has created the greatest drag on consumer perceptions of North American airline performance, according to the survey of 19,701 travelers who flew between April 2007 and March 2008.

Citing consumer feedback on the "knowledge, courtesy and helpfulness of reservation and gate agents, checkin staff and flight crew," J.D. Power said the "people factor" witnessed a precipitous drop from last year's findings.

J.D. Power this year closed the survey in March, before domestic carriers added fees for services once free, announced headcount reductions and were grounded due to maintenance issues.

Sam Thanawalla, director of the J.D. Power global hospitality and travel practice, expects price to continue to be less a frustration factor than service, even though fares continue to grow. "Customers understand that the cost of fuel is going up," he said, and are "okay with sharing some of those costs," but airline personnel issues remain a more controllable concern. "There are a lot of people dissatisfied with the people experience. They're stating loudly that the reduction in staff is going to create a more unmotivated, tired, lazy staff on the side of the airlines and that will add further to the dissatisfaction with the people factor. They are recognizing that some of these people are overworked, they're not friendly and they don't have the same communication they had in the past."

This year's study continues to show a divide in customer-service perceptions between legacy carriers and what J.D. Power defined as low-cost carriers—"airlines that operate single-cabin aircraft with typically low fares." JetBlue, for the fourth year in a row, gained the top spot, posting a 776-point score on a 1,000-point scale. JetBlue, along with low-cost carrier peers Southwest, Frontier and AirTran, averaged 730 points—besting the network carrier segment, which averaged 650 points.

"The low cost carriers, as you see from the results, do a lot better," Thanawalla said, "but their product promise has always been low cost. They never promised you a free meal or a pillow and a blanket."

Among network carriers, Alaska and Continental airlines posted the highest marks, tying for first with 684 points. This is Continental's third consecutive year leading legacy carriers, while Alaska was the only U.S.-based carrier to improve its overall score in the past year. The survey also showed a tie at the bottom, with Northwest Airlines and United Airlines each averaging 628 points.

"While nearly all of the carriers in both segments experienced declines in satisfaction since 2007, Alaska Airlines has managed to improve, particularly in satisfaction with the overall checkin experience," Thanawalla said. "Alaska Airlines and Air Canada are the only two carriers that improved overall in 2008."

J.D. Power measures customer satisfaction in seven categories: cost and fees, flight crew, inflight services, aircraft, boarding/deplaning/baggage, and checkin and reservations.