Airport numbers fall again in July

July was the sixth consecutive month of a drop in passenger counts compared to the same months last year. The airport had 74,698 passengers in July, down 11 percent from July 2007 and down about 4 percent from June.

For the year, the airport has seen nearly 463,000 passengers, down 7 percent from the first seven months of 2007.

The culprit continues to be high prices for jet fuel, which are passed on to customers in fares and extra fees that are turning off customers, according to airport spokesman Kent Boyd.

Boyd said the passenger slide also is likely tied to more travelers choosing cheaper flights at other airports, a phenomenon known as leakage.

“Fares have gone up everywhere, but they’ve gone up the most in smaller markets,” Boyd said. “I think that in those markets where an airline has competition, and a bigger supply of seats – meaning lower prices – they’ll make up the difference in a market with less competition, aka Springfield.”

Service reduction

The airport took another hit in August, when Delta Airlines ended service between Springfield and Cincinnati, though Boyd said that cut is partially tempered by the addition of a fourth daily Delta flight to and from Atlanta, as well as the announcement that Allegiant Air would add direct service to Phoenix in October.

“From what I’m hearing from the airline industry, we’re getting by pretty easily,” Boyd said. “Compared to other airports in (our four-state) region, we’ve done very well.”

Reductions have been the norm at other Midwest airports; Southwest Airlines announced Aug. 22 that it is cutting seven flights from Lambert-St. Louis International Airport, while Kansas City International Airport is losing six Southwest flights as well as direct service to Orlando, Fla., and Madison, Wis., through Midwest Airlines.

Arkansas airports have been hit even harder. According to published reports, the state is losing 36 percent of its 55 nonstop routes.

“Anyone who is monitoring the current (aviation) situation … understands what is happening,” said Robert Spence, vice chairman of the Springfield Airport Board. “The increase in prices has caused many people to re-evaluate their travel plans.”

A bright spot

The one positive piece of news in Springfield’s flight numbers continues to be Allegiant Air.

In addition to the Phoenix service, the airline posted a 6 percent passenger increase in July compared to last year, and it is up more than 19 percent for the year.

Despite the airline’s tourism focus, Boyd thinks the key to Allegiant’s success in the current climate is its unique business model – Allegiant is actually a full-service travel company.

“(Allegiant is) also getting revenue from hotels when they book those resorts and fees from rental cars people book on the Web site,” Boyd said. “The bottom line is that they’re not entirely dependent on revenue from fares.”

Allegiant also was one of the first companies to charge for flight amenities, from snacks to pillows to specific seat assignments.

“They make a sizable part of income per flight from those fees, and those are something the consumer can control,” Boyd said.

The future

As for the rest of the year, Boyd said it’s unclear how the $17.7 billion merger of Delta and Northwest Airlines, scheduled to close in early 2009, would impact Springfield; the two airlines provide service between SGF and four destinations: Atlanta, Detroit, Minneapolis and Memphis.

“Delta is saying there’ll be few reductions in service. I don’t know if I believe that,” Boyd said. “About once a week, I check to see if the destinations offered here by those two airlines are still in the reservation system.”

He noted that flights are still scheduled to all four destinations through the end of the year.

“I mention that because a lot of folks in the industry think the fourth quarter is going to be hard for the airlines, because they’ll be coming to the end of the cash reserves that they’ve been burning through for the past three quarters,” Boyd said. “Overall, the crystal ball is murky.”

Another factor to consider is the midfield terminal, scheduled to open for operation early next year.

Spence thinks the new terminal will help boost passenger numbers simply by reminding people of the opportunities available at SGF.

“The terminal will raise people’s awareness,” he said. “Some people who might have been going to Tulsa or Kansas City or even St. Louis will see that they can make better connections out of Springfield, and the difference in price could be less than what they think.”[[In-content Ad]]