At New Orleans Airport, Could a Spike in Revenue Mean More Flights? Yes
The revamped dining options at Louis Armstrong International Airport’s new terminal appear to be paying off.
The New Orleans airport saw food and beverage revenue grow by 32 percent in November compared to the same month a year earlier, and by 46 percent last month compared to December 2018.
Overall concessions, which include all retail sales, were up by 25%, to $7.8 million, in November and up by 36%, to $7.5 million, in December, according to the airport.
Airport spokeswoman Erin Burns said the increases, which were reported to the New Orleans Aviation Board last week, are cause for celebration not only for the additional revenue, but because they contribute to the airport’s goal of boosting non-airline revenue and perhaps thereby adding more flights.
One of the major aims in designing the new $1 billion terminal which opened Nov. 6 was to help increase such revenue, and the new slate of drinking and dining options — which includes big names such as Emeril Lagasse, John Folse, Leah Chase and local favorites Angelo Brocato and Cafe du Monde — was designed to do just that.
The new terminal’s restaurants are also open later than they were at the old terminal and are more fully equipped than their predecessors, many of which were only able to heat and assemble pre-cooked food.
The more money the airport can take in sources other than the airlines, the cheaper it is for carriers to fly in and out of New Orleans and the more attractive Louis Armstrong becomes for airlines considering adding flights.
In 2018, 63% of the airport’s revenue came from non-airline sources, up from 44 percent five years earlier. Total revenue for 2018 was $173.1 million.
Aviation Director Kevin Dolliole said the concessions improvements are working.
“The program is more properly located now, as most of it is post-security,” he said. “Folks will go out (to the airport) and spend time and money at the eateries and retail shops and, quite frankly, it’s a much better product.”
The $10.0 million in food and beverage sales during the last two months of the year compares to $7.2 million during the same period last year.
Concessions have been a key source of the positive reviews garnered by the new terminal, though some people have complained there isn’t much available to buy outside the security checkpoint and there is no bookstore.
Other elements at the airport have drawn complaints, specifically the heavy on-site traffic leading up to the "arrivals" curb and the issues it creates for people trying to leave the airport in cabs or ride-share vehicles, and residents picking up friends and family.
Despite occasional public outcries, airport officials have had a wait-and-see philosophy when it comes to making adjustments to the new terminal’s operations, though they have said they are considering all options.
After addressing the major baggage-handling problems at the new terminal and the heavy traffic at the arrivals curb, Dolliole once again suggested there could be some changes in the offing, though he offered no details.
“Everyone is learning now how to operate the facility,” he said. “And you may see for some period of time where we will shift certain components of the operation around to ensure we are getting optimal performance out of the facility.”
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