Spirit, Allegiant Make Gains in Pittsburgh During COVID-19 Pandemic

Jan. 19—Spirit is rising at Pittsburgh International Airport.

Taking advantage of travel trends during the pandemic, the ultra-low-cost carrier landed as the airport's third top carrier in December, hauling more travelers than traditional stalwarts like United and Delta.

It's not the only no-frills airline to see its market share in Pittsburgh increase during the pandemic. Allegiant Air also has experienced a modest boost in its traffic.

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In fact, one out of five travelers currently flying out of Pittsburgh are doing so on ultra-low-cost carriers, said Christina Cassotis, CEO of the Allegheny County Airport Authority, which operates Pittsburgh International. Not long ago, it was one in 10.

Of course, none of the airlines are carrying anywhere near the number of passengers they did in a market diminished by the pandemic. But of those traveling these days, many of them are doing so for leisure — the bread and butter for carriers like Spirit and Allegiant.

Those airlines typically offer a low base fare to travelers while charging extra for items like checked bags, seat requests, more leg room and snacks.

"I think it's really a function of the pandemic and what's driving traffic in general: leisure," Ms. Cassotis said. "These guys, that's their business model: to attract leisure customers."

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In December, Spirit carried 14.4% of all passengers, third behind Southwest and American. That's double the 7.2% it hauled in December 2019. Year to date through December, the airline has grabbed 10.5% of all passengers, nearly twice as many as the 5.9% for the same period in 2019.

This month, Spirit will average about five flights a day from Pittsburgh International. It flies to Fort Lauderdale, Fort Myers, Las Vegas, Los Angeles, Orlando, and Tampa.

Allegiant, meanwhile, didn't experience the big jump Spirit did but still saw its market share increase from 3% in December 2019 to 4.8% last month. Its year-to-date share went from 3.8% to 5.3%, respectively. It flies to half a dozen cities from the Findlay airport.

Pittsburgh is not the only airport where ultra-low-cost carriers are hot.

At Arnold Palmer Regional Airport in Latrobe, Spirit once again will start flying to Myrtle Beach in February and will add Fort Lauderdale and Fort Myers in March. Its flight to Orlando, now five days a week, will jump to seven days next month.

Gabe Monzo, executive director of the Westmoreland County Airport Authority, said the additions will bring the airport nearly back to pre-pandemic levels.

"That's quite the opportunity for us," he said. "We're hoping people react well to it, and we're excited about the prospects."

Experts see the lift provided to the ultra-low-cost carriers as a product of the pandemic. The sharp drop in business travel has impacted legacy carriers like American, Delta, United and even Southwest to some extent far more than it has airlines like Spirit and Allegiant.

Businesses have all but shut down travel because of the pandemic and are finding they can save money by holding meetings on Zoom or Skype, said Michael Boyd, a Colorado-based aviation consultant.

At the same time, carriers like Spirit cater mainly to leisure travelers whose decisions are based more on impulse than a daily planner. Right now, the leisure side is dominating.

"I can have a business meeting with Skype. I can't run on the beach with Skype. I can't get a sun tan with Skype," Mr. Boyd said.

William Swelbar, a Massachusetts Institute of Technology researcher with expertise in the aviation industry, said the ultra-low-cost carriers have weathered the COVID-19 storm better than others.

They are still hauling about 60% of their pre-pandemic traffic, compared to about 40% for the legacy airlines, he noted.

The fact Pittsburgh has gone from being a hub dependent on connecting traffic to one centered on local traffic also has given ultra-low-cost carriers an environment to thrive.

"I'm not terribly surprised," Mr. Swelbar said of their rise in Pittsburgh. "It's the ultra-low-cost carriers that are being fairly aggressive, and people want to go to the destinations they serve."

Spirit led the industry with its planes carrying about 68% of their capacity in the third quarter, said John Kirby, vice president, network planning.

One reason the airline has done well, he said, is it hasn't had to change its business model because of the pandemic. It has always offered low fares, and it has always targeted leisure travelers.

"It's leisure, and it's visiting friends and relatives. People are still going to see family. They're going to see close friends. That's our business model. We haven't had to change our model," he noted.

In a statement, Allegiant said it has seen a "resilience in leisure travel, particularly surrounding holiday periods, and to locations with outdoor recreation opportunities such as national parks.

"This has brought about a trend of more originating traffic from cities like Las Vegas, Los Angeles and Phoenix (which would typically be vacation destinations themselves) to states like Montana, Wyoming, South Dakota and Idaho."

Another factor, it suggested, is "We fly only nonstop flights in an out-and-back network (flying to and from bases, rather than going through hubs).

"This means we do not have layovers or connecting flights, meaning less time in airports. We believe all of these factors add to customer confidence and help position Allegiant for a strong rebound as demand continues building toward a full return."

Whether Spirit, Allegiant and other ultra-low-cost carriers will be able to hold onto the gains they've made in Pittsburgh and elsewhere once the pandemic ends is a matter of debate.

Ms. Cassotis believes it's possible here.

"I think they will continue to do well because they just have the route structure and the markets that people want to go to for leisure, and I think there's going to be a pent-up demand [for travel]," she said.

Mr. Boyd also sees the pattern continuing simply because he's not expecting business travel to return anywhere close to pre-pandemic levels.

However, Mr. Swelbar predicted there will be a shift back to legacy carriers like American, United and Delta if COVID-19 is tamed.

"At some point, we're going to want to go to Los Angeles and not just Orlando," he said.

Mark Belko: [email protected] or 412-263-1262.

First Published January 19, 2021, 5:27am

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