Efficiency of airlines: Hub and Spoke versus Point-to-Point

Purpose – The purpose of this paper is to study the efficiency and financial situation of Spanish airlines by conducting a comparative analysis of those operating in hubs and those that employ the point-to-point system. Design/methodology/approach – Data envelopment analysis and accounting rates are implemented to do so. Findings – The results show that hubs do not result in the companies that use them being efficient. Instead, it is the charter, low-cost and private flight operators that best manage their resources. Originality/value – The study makes a novel contribution to the literature, as there has been no research on Spanish airlines that compares the two types of operators (hubs and point to point).