Lower passenger numbers continue at Springfield-Branson National Airport

Downward passenger trends and flight numbers likely will continue into 2011, according to Gary Cyr, aviations director at Springfield-Branson National Airport.

Cyr discussed the airport’s condition during the State of the Airport address Feb. 9 at the Springfield Area Chamber of Commerce office. He called 2010 a year of challenges and expects more of the same in 2011.

Total passengers flying out of Springfield dropped 2 percent to 796,251 in 2010, compared to 811,771 in 2009. Flights dropped by 1 percent during the year.

“We expect no significant growth in demand, mainly because the recession is not over,” Cyr said. “Unemployment continues to hover around 10 percent – keep in mind that employment is a key driver in demand. The industry is still in a very fragile situation.”

Mike Mooney, air service strategy and development consultant with Eugene, Ore.-based Sixel Consulting Group Inc. detailed the airline industry.

Airlines adapted to the sour economy by cutting the number of seats in the air and charging fees on luggage, aisle seats and other services.

These adaptations, not growing demand, have helped the airline industry achieve better financial condition, Cyr said, noting that airlines might paint a different picture that suggests demand in driving profitability.

“This is called Wall Street analysis to predict a rosy 2011. Don’t believe that,” Cyr said. “Airline profits this past year were not driven by improved demand; rather, they were improved by fees and cutting capacity.”

See additional coverage in the Feb. 14 Springfield Business Journal print edition.
[[In-content Ad]]