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McKinsey Capitalizing on Connections

McKinsey Capitalizing on Connections

McKinsey Capitalizing on Connections

 

Airlines typically price well on their nonstop business. But most connecting flights are an afterthought. A more analytical approach could improve profits by one to two percentage points.

 

Most airlines’ primary revenue source has always been point-to-point passengers. Historically, connecting flights were an afterthought. But in recent years, the proportion of connecting passengers among all air travelers has greatly increased. In the early nineties, 26 percent of passengers at London’s Heathrow Airport were making connections. Today, the figure is 35 percent, according to the Civil Aviation Authority. At other hubs, such as Amsterdam’s Schiphol, the increase has been even larger, and some new hubs, such as Hamad International Airport, in Doha, have been built almost entirely to serve connecting passengers.

 

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