Weekly Airline Capacity Update


Updated February 7, 2022
 
Greetings!

Welcome New Subscribers!
We’ve received many new subscribers over the past few weeks and wanted to say welcome and introduce ourselves! We are Ailevon Pacific Aviation Consulting, an international consulting firm specializing in Air Service Development. 

Ailevon Pacific Aviation Consulting was established by experienced aviation professionals with extensive experience in network planning, revenue management, operations, airport management, aviation strategy, and management consulting. Our roster of diverse clients includes airports, airlines, tourism bodies, and governments from around the world. In particular, we have significant experience in North America, Australia, New Zealand, and the Pacific Islands. We’ve also worked extensively in South East Asia, North Asia, the Indian Subcontinent, the Middle East, Europe, and South America. Our office locations in Sydney, Australia; Dallas, Texas; Phoenix, Arizona; Denver, Colorado; St. George, Utah; Seattle, Washington; and Atlanta, Georgia reflect our global footprint, providing our clients with unparalleled access to many of the world’s largest airlines.

Wow! Big news coming in this morning! Frontier and Spirit announced plans this morning to merge into the 5th largest U.S. carrier, if approved. Another ULCC announcement this morning is that John Redmond will assume the role of CEO at Allegiant on June 1, 2022 and Maurice Gallagher will assume the role of executive chairman of the board.

Reach out if you have any questions on these changes and the impact it could have to your airport.
This week we welcomed a new teammate, Greg Atkin. Greg comes to us from SkyWest Airlines as the Managing Director of Market Development and has 17 years of airline industry experience. Welcome Greg!
Capacity Update
Last week American right sized April domestic capacity and this week they carried that forward into May. May domestic capacity was reduced 20% week over week, bringing May to 90% of 2019 levels. They removed 41 routes from May, 19 from June and July, 15 from August and five from September. Charlotte (CLT) to Reno (RNO) and Fresno (FAT) to Chicago (ORD) had all future flights removed from the schedule. Boston (BOS) to Ft. Lauderdale (FLL) and CLT to Ithaca (ITH) had all flights remove from May onwards.

American is bringing back three Miami (MIA) routes starting in May, Columbia (CAE), Chattanooga (CHA) and Huntsville (HSV). ITH to Philadelphia (PHL) is also returning in May.
Allegiant reduced March capacity 8% week over week due to the cancellation of eight routes. The routes that were cancelled were: Austin (AUS) to Amarillo (AMA), Cincinnati (CVG), and Pittsburgh (PIT), Boise (BOI) to Palm Springs (PSP), Eugene (EUG) to Oakland (OAK), New Orleans (MSY) to Raleigh Durham (RDU), Palm Beach (PBI) to Concord (USA), and Punta Gorda (PGD) to Rapid City (RAP). Allegiant also announced last week they would be adding nine new nonstop routes in April 2022. New routes include: Austin (AUS) to Sarasota (SRQ), San Diego (SAN), and Dulles (IAD); Nashville (BNA) to Providence (PVD), Roanoke (ROA), and IAD; SAN to Sioux Falls (FSD), and Savannah (SAV) to Flint (FNT).

Spirit reduced April domestic capacity 6% week over week. They also cancelled Orlando (MCO) to Ponce (PSE) in February, cancelled 19 markets in April, six in May, and seven in June. 12 of the routes were to Florida markets. They also removed Detroit (DTW) to Oakland (OAK) from future schedules this week. Spirit added back Houston (IAH) to Myrtle Beach (MYR) in May 2022 after a break since September 2019.

Frontier reduced April domestic capacity 3% week over week. This was mostly due to the cancellation of 13 routes in April and three from April onwards. Denver (DEN) to Fresno (FAT) and Tulsa (TUL) and Las Vegas (LAS) to Tucson (TUS) were removed from April onwards. Eight of the 13 other markets were to Florida markets. They also removed Austin (AUS) to Orlando (MCO), Islip (ISP) to Miami (MIA), and Philadelphia (PHL) to Providence (PVD) from future schedules this week.

United reduced May domestic capacity 2% week over week. They cancelled 14 routes in May across their network. Two markets were cancelled in April Dulles (IAD) to Johnstown (JST) and Los Angeles (LAX) to Sun Valley (SUN). United added Superbowl flights between Cincinnati (CVG) and LAX for this weekend.

Delta reduced April domestic capacity 2% week over week due to the cancellation of three routes: Detroit (DTW) to Evansville (EVV), White Plains (HPN), and Oakland (OAK). They also cancelled DTW to OAK and Sarasota (SRQ) in May.

JetBlue cancelled Hartford (BDL) to Fort Myers (RSW) in June and removed Ft Lauderdale (FLL) to Palm Springs (PSP) from future schedules this week. Silver Airways removed Columbia (CAE) to Tampa (TPA) and Orlando (MCO) and Greenville (GSP) to Jacksonville (JAX) from future schedules this week. Lastly, Aha! reduced day of week flying in two Reno (RNO) markets from three days of week to two: Arcata (ACV) and Bakersfield (BFL).
TSA Update
January finished at 77.5% of 2019 travelers. This was 6.7 points below where December finished. The first six days of January are at 78.2% of 2019 levels.
COVID Vaccination Update
In the US, 64.1% of the population, or ~212,8 million, have been fully vaccinated.

80.4% of all Americans >4 years old have had at least one shot.

89.8 million or 50.6% of Americans that are eligible have received a booster shot since August 13, 2021.
Q4 2021 Earnings Calls
Alaska - Transcript
Allegiant - Transcript
American - Transcript
Delta - Transcript
Frontier - Wednesday, February 9, 2022 4:30 PM EST Link **This week**
Hawaiian - Transcript
JetBlue - Transcript
SkyWest - Transcript
Southwest - Transcript
Spirit - Wednesday, February 9, 2022 10:00 AM EST Link **This week**
Sun Country - Tuesday, February 8, 2022 8:30 EST Link **This week**
United - Transcript
Small Community Air Service Development Program (SCASDP) has been announced!
The government has released the solicitation order for the 2022 SCASD. It is due March 15, 2022. Here is a general overview of what to expect.
  1. 20 page limit
  2. Grants.gov registration process must be completed by airport as soon as possible (takes 2-4 weeks to complete)
  3. A DUNS number is required and registration in System for Award Management (SAM) is also required by the airport
  4. Max of 40 applicants will be awarded the $17m that is available
  5. Communities without existing air service can apply for SCASD
  6. Airport must be small hub or smaller sized
  7. A community may only have one active SCASD at a time
  8. EAS markets are not eligible
  9. Cost sharing or matching is not required for applications. However, applications that provide multiple levels of contributions (State, local, cash, and in-kind contributions) will be viewed more favorably
  10. Criteria that will be considered
  11. Air fares are higher than the national average air fares for all communities
  12. The community or consortium will provide a portion of the cost of the activity from local sources other than airport revenue sources
  13. The community or consortium has established or will establish a public-private partnership to facilitate air carrier service to the public
  14. The assistance will be used to help restore scheduled passenger air service that has been terminated
If you have any questions, please reach out to [email protected].
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