As Traffic Plummets, Allentown Airport Could See Millions in Relief from Coronavirus Stimulus Package

The Lehigh-Northampton Airport Authority will likely receive several million dollars from the federal coronavirus stimulus package, providing needed relief as its passenger numbers crater from the pandemic.

Executive Director Tom Stoudt said the Transportation Security Administration informed the authority the number of people who passed passing through the security checkpoint at Lehigh Valley International Airport this past week was 93% lower than anticipated. Among the 7% of people still passing through are flight crews serving mostly empty jets. Airports across the country have seen similar drops as Americans cancel all nonessential travel, Stoudt said.

With so few passengers, carriers have begun slashing their services, though the exact plans are changing frequently, Stoudt said. As of noon Tuesday:

Allegiant Air has halted 35% of its flights with most of the cuts trimming the frequency of some connections.

Delta Air Lines will stop its connection between Atlanta and LVIA as part of a nationwide change that will ground 50% of its fleet and cut 70% of its flights.

Nationally, American Airlines will cut 60% of its flights in April and 80% of its scheduled flights by May.

United Airlines will slash its 68% of its flights across the country and reduce flights to Chicago from LVIA from twice a day to once a day. It’s also grounding half its fleet.

With revenues from its concession stands, baggage handling, parking fees and fuel sales plummeting, the authority hopes it will receive its share of the federal coronavirus stimulus package in the weeks ahead.

The law, which President Donald Trump signed Friday night, sets aside $10 billion for airports. The exact formula for how that funding will be divvied up is still being calculated by the FAA, but Stoudt estimated it would be several million dollars.

The money is sorely needed. While revenue has fallen, the airport has a limited ability to cut expenses, Stoudt said. The airport is required to remain open, and employees like firefighters, police, maintenance staff and ticket window salespeople must be on hand.

“We don’t need as many people in the parking booth. Some of those things have dropped but we can’t completely close or mothball every part of the facility,” Stoudt said. “That’s the real challenge and why the funding is so significant.”

Earlier in March, the authority announced that executive staff would take a 10% pay cut. Some employees are now taking voluntary furloughs to stay at home or take care of children who are no longer in school or day care. The authority also postponed $4 million in capital projects from its $24.2 million 2020 budget to next year, including plans to repave its now empty parking lot.

Prior to the outbreak, business had been strong at the airport. Allegiant opened a new aircraft base at LVIA in February, and the airport had seen almost 30 consecutive months of year-over-year growth. Through the first two months of 2020, it was $656,000 ahead of budget, offering a little bit of cushion for the lean times ahead.

One area that hasn’t dropped off is cargo. Necessary medical equipment is still being shipped across the country, local manufacturers are still shipping essential goods, and e-commerce has surged with customers stuck at home, Stoudt said. Cargo activity was up 11% through February, and that figure is likely to stay strong in the weeks ahead, Stoudt added.

“We would be in need of a significant lifeline if we did not have the cargo activity,” he said.

Morning Call reporter Tom Shortell can be reached at 610-820-6168 or [email protected].

———

©2020 The Morning Call (Allentown, Pa.)

Visit The Morning Call (Allentown, Pa.) at www.mcall.com

Distributed by Tribune Content Agency, LLC.