Wilkes-Barre/Scranton airport sees 4 percent dip in passengers

Jan. 29, 2013

Jan. 28--Nearly 10,000 fewer people boarded planes at Wilkes-Barre/Scranton International Airport last year compared to 2011, a trend grounded in skyrocketing fuel prices and fewer flights offered by major airlines.

Despite adding Allegiant Air, a carrier that offers twice-a-week flights to Sanford, Fla., the airport saw a 4 percent drop in passengers boarding flights this year, from 233,990 in 2011 to 224,530.

Still, the number of passengers that boarded flights in 2012 is 3 percent higher than 2010 figures and 8 percent above 2009 totals.

"We rebounded after a down summer, but we would like to get back to the 2011 numbers," airport Director Barry Centini said. "Obviously, what has hurt us is the decrease in local natural gas drilling, the loss of American Airlines and the area's unemployment rate."

American Airlines' decision to discontinue its service with the airport in mid-November 2011 left a significant void, as the carrier accounted for 20,833 -- or 8.9 percent -- of the passengers who boarded flights in 2011.

But that decrease was offset by Delta's decision to add a daily flight to Atlanta along with the acquisition of Allegiant Air, which, combined, boarded roughly 23,000 passengers in 2012.

Plus, airlines at the airport canceled 121 fewer departing flights through November 2012 for air-traffic or weather reasons, compared to the first 11 months of 2011. Using a 50-seat jet as the standard, that difference equates to roughly 6,000 additional passengers boarding planes.

Carriers cut flights

While cancellations are down, so too are the number of passengers boarding flights on major airlines, such as United Airlines and US Airways.

In 2011, the two carriers combined to board 162,511 passengers. Last year, the carriers boarded 149,166, or 13,345 fewer passengers -- an 8.2 percent drop.

And the drop-off isn't because the demand is low, said Roger Cohen, president of the Regional Airline Association. Rather, he says it's a supply shortage -- a reduction in flights offered by major carriers.

"Industry-wide, not just at regional airports, the number of flights has been shrinking," said Mr. Cohen, who cited rising fuel costs. "Airlines are looking for more efficient ways to operate, and regional airports are particularly more vulnerable because there tends to be less flights to begin with."

Lehigh Valley International Airport Director Charles Everett said he saw the effect of the "volatile" fuel prices last year, when two carriers discontinued service at the airport and the number of total passengers plummeted by about 17 percent.

"Some carriers are pulling planes from regional airports because the fuel prices are so high," Mr. Everett said. "I think they (fuel prices) will stabilize in the next quarter, or several quarters."

Fuel costs skyrocket

But fuel prices have been anything but stable over the past decade.

In 2000, the jet fuel cost was 85 cents per gallon, according to Vaughn Jennings, the managing director of government and regulatory communications for Airlines for America, a trade organization among the U.S. Airlines.

Eleven years later, in 2011, the rate stood at 300 cents per gallon -- a 252 percent increase.

"Fuel is the single largest cost for airlines," Ms. Jennings said. "In 2011, U.S. passenger and cargo airlines spent a record $50 billion on fuel, up $11.7 billion from 2010, or an additional $32 million per day."

As the fuel costs continue to skyrocket, many airlines are shifting from smaller planes to larger ones, hoping to "spread the cost over more seats," U.S. Airways spokesman Todd Lehmacher said.

He said U.S. Airways is one of the few airlines that still flies a 37-seat turboprop, which allows the company to serve the "thinner markets," such as Allentown or Wilkes-Barre/Scranton, profitably.

"There are some markets that are well-suited for the 37-seater," he said. "But most airlines are moving toward the larger air crafts."

Delta spokesman Anthony Black said the company's once prized 50-seat jets are now "operationally inefficient," as the cost to operate them -- for the most part -- nullifies the revenue generated. He said the company has shifted its focus to larger planes, such as a 65- or 76-seater, at regional airports.

"In the end, the goal is to find the perfect match for each market," Mr. Black said. "From an economic standpoint, the larger planes make more sense, and they are more comfortable for passengers."

Bright Future

Aviation analyst Michael Boyd said a shift toward larger planes "can't come soon enough" for the Wilkes-Barre/Scranton International Airport.

He referenced United's 88 percent load factor on flights to Chicago and Delta's 81 percent load factor on flights to Detroit, and suggested that the flights are full -- except, maybe, for a Saturday morning.

"Some of the airlines are probably losing passengers, because if their flights are full, people will go to Binghamton or Allentown," Mr. Boyd said. "I think a move to larger airplanes would be very positive for the airport.

"Clearly, this airport is in good shape. If Allegiant is at your airport, it's like having an audit, because they won't stay at a place they don't think is efficient."

Reflecting on a year in which Federal Aviation Administration Administrator Michael Huerta and U.S. Secretary of Transportation Ray LaHood visited the airport to dedicate the new $20.5 million air traffic control tower, Mr. Centini said he is happy with the direction the airport is headed.

He said airport officials are continually working to secure another carrier, or add more flights, but as of now, nothing is on the horizon.

"We just have to hope the gas business continues to grow and the economy turns around," Mr. Centini said. "We will focus on what we can control, and continue looking to improve this airport."

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