More than a dozen airlines currently have filed requests to suspend service under consideration by the U. S. Department of Transportation. These requests come from both mainline and regional carriers. What affect will these cuts have on airports? Is your airport on the list for possible service cuts?
These cuts are requested as the airlines continue to conserve cash, deal with continuing travel restrictions and general fear of the public to fly during these times. The airports that would be most impacted are regional airports and those airports depending on seasonal service. Palm Springs is an excellent example of an airport that is both regional and is subject to seasonal air travel patterns.
Before the pandemic, airlines were free to increase or decrease flights in and out of airports. The main consideration for expanding or contracting service was primarily based on available landing slots and terminal gates. That was before the CARES Act. The airlines that accepted money from the CARES Act have to petition the U. S. Department of Transportation to stop service to a particular city. There are 15 airlines that currently have petitions on file and are waiting for decisions on whether their petitions will be granted. The government’s comment period ended last week from cities, chambers of commerce and Congressional members that may be impacted.
What’s At Stake
Airline traffic measured by the term “load factor” crashed to single-digit numbers. Typically, a well-managed airline needs to have an average load factor of 70% to remain profitable. Even though airlines have seen a modest increase in load factor, it is still far from where the airlines need to be to stay in business. The airline industry group, Airlines for America reports that domestic flights have been averaging just 31 passengers per flight down from the norm of 85 to 100 passengers for the month of May.
Service cuts that have been requested can be temporary or permanent. This is especially true in markets that are subject to wide swings in seasonal air demand. Palm Springs is a good example of a seasonally-driven destination. Palm Springs is in the desert with summer temperatures in excess of 100 degrees and sees the most air traffic in the winter months. Some reductions can be completely out of the airlines’ control. The governor of Hawaii has all but put the brakes on travel to Hawaii with a mandatory 14-day quarantine. This quarantine requirement was recently extended by the Hawaii governor at least until the end of June, 2020.
Regional Airports that already have limited air service could be the biggest losers in this round of service cuts. Regional airlines fly people to and from regional airports to connect with mainline carriers at major airports. Regional airline Corvus Airlines in Alaska is planning on pulling the plug on four Alaska airports – Kodiak, Goodnews Bay, Napaskiak and Platinum.
The good news is that airlines don’t have to apply to the Department of Transporation to resume or increase service levels. Some of these routes may come back when people feel comfortable flying again.
Service Cuts By Mainline Carriers
Here is a list of proposed service cuts by the mainline carriers.
ALASKA AIRLINES
- Charleston, SC
- Columbus, OH
- El Paso, TX
- New Orleans, LA
- San Antonio, TX
ALLEGIANT AIR
- New Orleans, LA
- Ogdensburg, NY
- Palm Springs, CA
- San Antonio, TX
- Springfield, IL
- Tucson, AZ
AMERICAN AIRLINES
- Aspen, CO
- Eagle, CO
- Montrose/Delta, CO
- Worcester, MA
DELTA AIRLINES
- Aspen, CO
- Bangor, ME
- Erie, PA
- Flint, MI
- Fort Smith, AR
- Lincoln, NE
- New Bern/Morehead/Beaufort, NC
- Peoria, IL
- Santa Barbara, CA
- Scranton/Wilkes-Barre, PA
- Williston, ND
FRONTIER AIRLINES
- Greenville/Spartanburg, SC
- Mobile, AL
- Palm Springs, CA
- Portland, ME
- Tyler, TX
JET BLUE
- Albuquerque, NM
- Palm Springs, CA
- Sacramento, CA
- Sarasota/Bradenton, FL
- Worcester, MA
SPIRIT AIRLINES
- Asheville, NC
- Charlotte Amalie, VI
- Christiansted, VI
- Greensboro/High Point, NC
- Plattsburgh, NY
SUN COUNTRY AIRLINES
- Madison, WI
- Philadelphia, PA
- Portland, OR
- Sacramento, CA
- St. Louis, MO
UNITED AIRLINES
- Allentown/Bethlehem/Easton, PA
- Charlotte Amalie, VI
- Chattanooga, TN
- Fairbanks, AK
- Hilton Head, SC
- Ithaca/Cortland, NY
- Kalamazoo, MI
- Key West, FL
- Lansing, MI
- Myrtle Beach, SC
- Rochester, MN
As you can see, multiple airlines are reducing service to the same airports. Most of these service reductions are in tourist markets or subject to seasonal traffic demands.
Service Cuts By Regional Carriers
The list of regional air cutbacks is extensive. I will list the affected carriers with a link to their websites so you can check your particular destinations.
Final Thoughts
These are trying times for not only airlines but the entire travel industry as a whole. Airlines have to deal with travel restrictions, a poor economy, a pandemic and people that are just too afraid to fly right now. Airlines need to average at least a 70% load factor to stay in business. Load factors originally dropped to single-digit numbers and are just now expanding into low double-digits figures. If the recession of 2008 is any indicator, it will take years for the airline industry to get back to some sort of normal. When the airlines recover, you can expect to see smaller aircraft fleets as the airlines will have a leaner and meaner look.
