Why Airlines Still Use Smaller Aircraft Even if Demand is High

The usual premise would be that if the air travel demand to a certain destination is high, then a wide-body aircraft is needed, but if the demand is low, then a smaller aircraft should be deployed. However, you might have noticed that some airlines continue to deploy narrow-body aircraft even if the demand is high. They deploy 2 to 3 daily flights to that airport using narrow-body planes instead of one flight using a wide-body aircraft. While it may not make much sense to a typical person, it actually makes a lot of sense to the airlines, and here are the reasons why.

More Frequencies

Many travelers value choice and flexibility, especially on popular routes. By deploying smaller planes, airlines can increase flight frequencies, offering passengers more departure times and connection options. This caters to diverse travel needs, whether it’s catching an early morning meeting, maximizing leisure time, or securing a specific seat preference.

Imagine two scenarios: Airline A operates a single daily flight to a business hub using a 400-seater aircraft, while Airline B flies two smaller 200-seaters on the same route. While Airline A enjoys lower landing fees and gate rentals due to a single operation, Airline B caters to a broader range of needs. Business travelers seeking early arrivals have their pick, while leisure passengers can book flights around their preferred schedules. Increased frequency can attract more passengers, potentially offsetting the cost savings of operating larger planes.

Optimizing Utilization

Demand for air travel often fluctuates throughout the week, season, and year. While a massive aircraft might seem ideal for peak periods, it risks remaining partially empty during off-peak times. This imbalance translates to lost revenue and inefficient resource allocation. Smaller planes, with their lower capacity, offer greater flexibility to match capacity to actual demand. Airlines can deploy additional flights during peak hours without overcommitting resources, and scale back frequencies during slower periods, minimizing losses.

Consider a resort destination popular during holidays. A large aircraft might be necessary during peak season, but deploying it year-round could prove detrimental. Smaller planes allow airlines to cater to consistent, lower demand during non-peak months while ramping up operations during holidays, achieving better overall utilization and financial stability.

Operational Limitations

Not all airports with high demand can accommodate wide-body aircraft. A perfect example is Caticlan Airport in the Philippines, the gateway to the world-famous Boracay Island. You see, some airlines operate more than three daily flights to this airport. While airlines like PAL Express and Cebu Pacific have Airbus A321s in their fleet, I barely see them operating the higher capacity A321s to Caticlan, mostly A320s. While the runway of Caticlan can accommodate A320s, it is still not enough to safely handle the longer A321s.

Always remember that safety is paramount in the airline industry, and airlines will never risk safety for extra profits or savings. Hence, if there are some airport limitations like equipment availability and runway length, airlines would still rather operate smaller aircraft.

Cargo Considerations

For some airlines, especially low-cost carriers, aircraft utilization remains paramount. In some instances, widebody aircraft might be deployed on short-haul routes with lower passenger loads, but this isn’t solely a capacity mismatch. Airlines leverage the increased cargo capacity of widebodies to cater to high cargo demand on such routes, generating additional revenue streams and optimizing overall aircraft utilization.

Last but not least, fleet composition plays a crucial role in airline decision-making. Airlines might lack the availability of larger aircraft on specific routes due to maintenance schedules, seasonal shifts in demand across their network, or simply not having enough large aircraft in their fleet. In such cases, deploying smaller planes becomes the only viable option, even on high-demand routes.

Ultimately, the decision to deploy smaller planes hinges on a complex analysis of various factors. Airline strategists consider demand patterns, airport infrastructure, operational costs, passenger preferences, and aircraft availability to find the “sweet spot” between capacity, frequency, and overall profitability. While large aircraft offer economies of scale in certain scenarios, smaller planes often prove to be surprisingly efficient and versatile tools in an airline’s arsenal.