U.S. DOMESTIC INDUSTRY OVERVIEW FOR OCTOBER 2010 All RNO Carriers Systemwide year over year comparison

Transcription

1 Inter-Office Memo Reno-Tahoe Airport Authority Date: November 22, 2010 To: Chairman and Board of Trustees From: Krys T. Bart, A.A.E., President/CEO Subject: RENO-TAHOE INTERNATIONAL AIRPORT OCTOBER 2010 PASSENGER & CARGO STATISTICS U.S. DOMESTIC INDUSTRY OVERVIEW FOR OCTOBER 2010 All RNO Carriers Systemwide year over year comparison Average Load Factor: 80.2% up 1.7 pts Number of Flights: * 15.2% up Capacity of Seats: * 14.6% up Crude Oil: ** $75.8 per barrel October 2010 vs. $70.1 per barrel October 2009 RNO OVERVIEW FOR OCTOBER 2010 year over year comparison Total Passengers: Up 3.9% Average Load Factor: 68.2% down (13.4) pts Number of Flights: Up 16.7% Capacity of Seats: Up 11.1% Total Cargo: Up 16.4% Source:*APGDat RNO Monthly Flight Activity Reports ** U.S. Energy Information Administration AIRPORT SUMMARY Reno-Tahoe International Airport experienced another positive month in October 2010 from both passenger and cargo traffic. The positive passenger growth was the fifth consecutive monthly increase. Total passengers at RNO increased 3.9% to 306,718 in October 2010 versus the same period last year. October 2010 calendar year-to-date passenger count was 3,251,834, which is 1.8% above October 2009 year-to-date. In addition, 9.9 million pounds of cargo were handled at Reno-Tahoe International Airport, up 16.4% versus last year. This represents the second month in a row that cargo volumes have returned to 2008 levels. October 2010 year-to-date cargo volume at RNO was 89.1 million pounds, which is 8.1 million pounds greater than the cargo volumes

2 carried in the same period last year, an increase of 10%. Year over year cargo volumes carried at RNO have been up for the past nine months. RNO is served by six major airlines providing 69 nonstop departures to 15 destinations. During the month of October 2010, RNO reported 2,170 scheduled departures, which is an increase of 16.7% over October This increase was due to the additional capacity by American Airlines to Los Angeles and Dallas, United Airlines to Denver and Los Angeles and US Airways to Phoenix. Southwest Airlines also added a daily flight to Phoenix in the beginning of this year. In addition, seat capacity, at 247,442 seats, increased 11.1% versus last year. Increased capacity at RNO resulted in a low average load factor of 68.2%. It may take a few more months for the market demand to absorb the additional capacity at Reno-Tahoe International Airport. TOTAL PASSENGERS In October 2010, the passenger increase of 3.9% versus last year was driven by American Airlines with a 47.9% increase as a result of their added capacity. Year over year passenger count for Southwest Airlines was up 1.2%, Alaska Airlines was up 4.4%, Delta Airlines was up 8.3% and United Airlines was up 9.9%. US Airways passenger count, however, decreased 22.1% below last year. AIRLINE LOAD FACTORS A drop of 13.4 load factor points from 81.6% in October 2010 to 68.2% in October 2009 was a result of frequency increase of 16.7%. October 2010 RNO Airline Load Factor and Systemwide Comparison Airline Reno LF System LF Difference Alaska/Horizon 73.1% 81.1% (8.0) American 77.0% 83.4% (6.4) Delta 73.1% 83.0% (9.9) Southwest 62.1% 81.7% (19.6) United 69.4% 85.7% (16.3) US Airways 54.3% 83.8% (29.5) 2

3 AIRLINE MARKET SHARE In October 2010, Southwest Airlines carried 163,047 passengers with a passenger market share of 53.2%. The next highest market share was United Airlines at 13.8%. American Airlines, with the third largest market share percentage, had the largest year over year increase in market share of 3.4 points to 11.5% as a result of adding three new daily departures to Los Angeles on American Eagle in June of this year. October 2010 RNO Airline Market Share Percentage October 2010 October 2009 Change Alaska/Horizon 7.4% 7.4% 0.0 American 11.5% 8.1% 3.4 Delta 7.7% 7.4% 0.3 Southwest 53.1% 54.5% (1.3) United 13.8% 13.0% 0.7 US Airways 6.16% 8.2% (2.1) Non-Scheduled 0.3% 1.4% (1.1) DOMESTIC AND INTERNATIONAL CHARTER PASSENGERS RNO charter traffic decreased 78.3% in October 2010 versus October A total of 908 charter passengers was reported in October 2010 compared to 4,184 passengers the previous year. The vast majority of charter traffic is driven by the Harrah s charter program which has been scaled back. SCHEDULED DEPARTURES Schedule Changes Since October 2009 Market Add/Cancel Month American Airlines LAX Added 3 daily flights Jun-10 American Airlines DFW Added a daily flight Mar-10 Alaska/Horizon SEA Added a daily flight Jun-10 United Airlines DEN Added a daily flight Jan-10 United Airlines LAX Added a daily flight Jan-10 Added 2 daily flights Jul-10 US Airways PHX Added a daily flight Oct-10 Southwest Airlines PHX Added a daily flight Jan-10 Southwest Airlines BOI Added a daily flight Mar-10 Southwest Airlines DEN Started a daily service Jan-10 United Airlines SFO Cancelled a double daily* Nov-09 Southwest Airlines LAS Cancelled a double daily* Sep-10 *seasonal 3

4 TOTAL CARGO In October 2010, dedicated cargo carriers carried 16.4% more cargo versus October Cargo volumes for all-cargo carriers were up across the board: Ameriflight 11.2%, FedEx 19.8% and UPS 13.1%. However, belly cargo carried by Alaska Airlines and Southwest Airlines decreased 10.8% for the same period. The U.S. Census Bureau reported that overall retail sales increased 0.7% against October Nonstore retailer (i.e. e-commerce) sales increased 13.5%, a large contributor to northern Nevada air cargo. 4

5 Total Passengers October , , , , , , , , ,000 50,

6 PASSENGERS Percent PASSENGERS Percent Month Change 2010 Change January 385, , % 293, % February 403, , % 294, % March 435, , % 346, % 1st Q Total 1,224, , % 935, % April 354, , % 309, % May 370, , % 312, % June 403, , % 361, % 2nd Q Total 1,128, , % 983, % July 411, , % 367, % August 412, , % 352, % September 337, , % 305, % 3rd Q Total 1,161,185 1,001, % 1,026, % October 327, , % 306, % November 283, , % December 309, , % 4th Q Total 920, , % TOTALS 4,434,638 3,755, % 3,251, % % change YTD Total Cargo October 2010 (Millions of Pounds)

7 CARGO (IN POUNDS) PERCENT Month METRIC TONS CHANGE January 11,231,880 8,777,047 8,695,804 3, % February 9,786,730 7,675,284 7,679,924 3, % March 9,519,983 8,237,243 8,814,895 3, % 1st Quarter 30,538,593 24,689,574 25,190,623 11, % April 9,915,236 7,841,936 8,633,892 3, % May 9,923,064 7,619,402 8,273,448 3, % June 8,893,972 7,870,143 8,737,038 3, % 2nd Quarter 28,732,272 23,331,481 25,644,378 11, % July 9,811,115 7,967,294 9,113,694 4, % August 9,763,038 7,929,474 9,388,206 4, % September 9,890,572 8,553,601 9,871,400 4, % 3rd Quarter 29,464,725 24,450,369 28,373,300 12, % October 9,971,505 8,519,360 9,915,411 4, % November 8,811,895 8,093,678 December 12,713,339 13,149,429 4th Quarter 31,496,739 29,762,467 TOTALS 120,232, ,233,891 89,123,712 40, % Enplaned Passengers October 2010 % change YTD 250, , , ,000 50,

8 PASSENGERS Month DIFFERENCE JAN 195, , , % FEB 200, , , % MAR 221, , , % APR 179, , , % MAY 183, , , % JUN 201, , , % JUL 205, , , % AUG 205, , , % SEP 172, , , % OCT 166, , , % NOV 141, ,009 DEC 148, ,202 TOTALS 2,224,016 1,881,992 1,620, % Deplaned Passengers October 2010 % change YTD 250, , , ,000 50,

9 PASSENGERS Month DIFFERENCE JAN 189, , , % FEB 202, , , % MAR 213, , , % APR 174, , , % MAY 186, , , % JUN 202, , , % JUL 205, , , % AUG 206, , , % SEP 165, , , % OCT 160, , , % NOV 141, ,078 DEC 161, ,183 TOTALS 2,210,622 1,874,012 1,620, % % change YTD Enplaned Passengers - Average Load Factor October % 90% 80% 70% 60% 50% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % 75.1% 75.2% 72.5% 72.5% 79.5% 79.9% 79.1% 81.6% 76.6% 70.7% 69.7% % 78.2% 80.0% 74.9% 78.8% 88.6% 85.6% 86.9% 86.3% 83.0% 74.4% 74.1% % 76.4% 81.1% 75.1% 76.1% 80.7% 80.5% 76.8% 72.5% 68.2% 9

10 ENPLANED PASSENGERS* LOAD FACTOR (%) DIFFERENCE Month (2010 / 2009) January 195, , , February 200, , , March 221, , , April 179, , , May 183, , , June 201, , , July 205, , , August 205, , , September 172, , , October 166, , , November 141, , December 148, , *** 2,224,016 1,881,992 1,631, Load Factor by Airlines October % 90% 80% Average 68.2% 70% 60% 50% 40% 30% 20% 10% 0% Alaska / Horizon American Delta Southwest United US Airways 10

11 Carrier Seats Available Enplaned Passengers 2010 Load Factor (%) 2009 Load Factor (%) Difference Alaska / Horizon 15,884 11, % 83.6% American 22,852 17, % 94.1% Delta 15,943 11, % 90.9% Southwest 132,084 81, % 62.9% -0.9 United 31,446 21, % 77.0% -7.6 US Airways 17,888 9, % 81.0% AVERAGE 68.2% 81.6% Total Air Carrier Market Share October

12 Non-Scheduled, 0.3% Alaska Air Group, 7.5% American, 11.5% Delta, 7.7% Southwest, 53.1% US Airways, 6.2% United, 13.8% Carrier Passengers Percentage of Total Alaska Air Group 22, % American 35, % Delta 23, % Southwest 162, % United 42, % US Airways 18, % Non-Scheduled % Totals 306, % Total Passengers Domestic Charter October

13 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Total Passengers Domestic Scheduled October , , , , , , , , ,000 DOMESTIC INTERNATIONAL 2010 TOTAL 2010 Charter 2009 Charter DIFFERENCE MONTH Scheduled Charter Scheduled Charter Passengers Passengers Passengers Passengers JAN 293, , , % FEB 294, , , % MAR 346, , , % APR 307,996 1, ,533 1,537 3, % MAY 308,951 3, ,378 3,427 5, % JUN 356,401 5, ,406 5,005 4, % JUL 366,231 1, ,997 1,766 3, % AUG 350,205 2, ,764 2,559 3, % SEP 303,091 2, ,774 2,683 3, % OCT 305, , , % NOV 0 4, % DEC % TOTALS 3,233,120 18, ,251,834 18,714 40, % 13

14 Monthly Scheduled Departures October ,900 2,700 2,500 2,300 2,100 1,900 1,700 1, ,608 2,434 2,598 2,396 2,401 2,445 2,515 2,455 2,030 2,069 1,905 1, ,949 1,904 2,139 2,010 1,984 2,010 2,077 2,046 1,800 1,860 1,740 1, ,922 1,764 1,984 1,860 1, ,232 2, ,170 Monthly Scheduled Departure Seats October , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,442 Total Operations October

15 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of Operations 09 to 10 Percent Month Change January 10,163 8,985 7, % February 10,420 7,498 6, % March 10,948 8,686 7, % April 10,501 8,391 7, % May 10,807 7,987 7, % June 11,753 8,492 8, % July 11,599 9,229 8, % August 11,837 9,086 8, % September 11,572 9,516 9, % October 8,889 8,036 7, % November 8,535 7,064 December 8,083 6,531 TOTALS 125,107 99,501 78, % % change YTD 15