U.S. airlines' on-time performance improved from a month earlier in July, the Department of Transportation said Monday, but they mishandled more bags than a month earlier.

The DOT's Bureau of Transportation Statistics said the 19 carriers reporting on-time performance had an overall rate of 76.7%, down from 77.6% a year earlier but up from 76.4% in June. The agency said carriers canceled 1.4% of their scheduled flights, compared with 1.2% and 1.5%, respectively.

A flight is counted as "on time" if it operated less than 15 minutes after the scheduled time shown in the carriers' computerized reservation system.

ExpressJet Holdings Inc. (XJT) had the worst on-time performance in July at 68.6%, while Hawaiian Holdings Inc.'s (HA) Hawaiian Airlines again had the best, with a 94.7% rate. Comair Ltd. (COM.JO) had the second-worst rate, at 69.1%, followed by Delta Airlines Inc. (DAL) at 69.9%.

Meanwhile, the industry had a mishandled baggage rate of 3.79 per 1,000 passengers in July, down from 4.06 a year earlier but up from June's 3.72 rate. The DOT also received 1,094 overall complaints in July, compared with 827 and 1,419, respectively.

-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com

 
 
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