RENO-TAHOE INTERNATIONAL AIRPORT APRIL 2008 PASSENGER STATISTICS

Transcription

1 Inter-Office Memo Reno-Tahoe Airport Authority Date: June 5, 2008 To: Statistics Recipients From: Tom Medland, Director Air Service Business Development Subject: RENO-TAHOE INTERNATIONAL AIRPORT PASSENGER STATISTICS AIRLINE INDUSTRY SUMMARY UPDATE Today s aviation industry is faced with unprecedented and extremely challenging issues including the continuous rise in the cost of fuel, a weakening domestic economy and softening travel demand. The cost of jet fuel, according to the June 1, 2008 report by the International Air Transport Association (IATA), was $3.78/gallon in North America, 84% higher than the previous year. As airline costs continue to increase, and the amount of individuals traveling decreases, carriers are forced to reduce capacity through a reduction in the number of flights or available seats. Virtually all domestic carriers have implemented, or have announced plans to implement, capacity reductions across their entire domestic network, affecting nearly every airport in the country. The following charts illustrate the reduction in flights and seats experienced by practically every airport on the West Coast. RNO is impacted and falls in the middle of the pack. WEST COAST AIRPORTS DEPARTURE COMPARISONS RNO is scheduled to lose approximately 6% of its daily departures due to capacity and seasonality reductions, which is comparable with other airports in the west coast such as Phoenix, Sacramento, Salt Lake, San Diego, Boise, Los Angeles, and Tucson. *RNO s decline of 6% is slightly greater than the national average of 3% Change in Departures (%) OAK SNA LAS SJC -7.4 PHX SMF SLC SAN BOI LAX RNO TUS Nat'l Avg -3 PDX -0.7 SEA SFO Source: * Schedule Plan September 2008 vs. September 2007 Actual

2 WEST COAST AIRPORTS SEAT COMPARISONS Due to airline capacity reductions and increased use of Regional Jet aircraft there will be a 10.6% decrease in the number of available seats flown out of RNO as described in the September 2008 versus the September 2007 schedule plan. This compares with the national average decline of 4.5% Change in Seats (%) OAK SNA RNO LAS PHX SJC TUS SAN SMF BOI Nat'l Avg -4.5 SLC -3.7 LAX -3.2 PDX -2.5 SEA SFO Source: September 2008 Available Seats vs. September 2007 Actual AIRLINE YIELD COMPARISON For year-end 2007, the yield at RNO was 12.8 cents per mile. This was the highest yield reported by any unconstrained airport in the West. Only Orange County, a capacity controlled airport, had a higher yield at 13.2 cents. RNO s neighbor to the south, Las Vegas, had the second lowest yield at 10.5 cents, second only to Long Beach at 9.6 cents SNA RNO SJC SMF PDX SFO PHX OAK SEA SAN LAX LAS LGB Source: Year End 2007 SOUTHWEST AIRLINES RNO S LARGEST AIRLINE Southwest Airlines is RNO s largest air carrier by market share, with 49.6% of the market for the month of April. Southwest accounted for approximately 2.5 million of RNO s five million total passengers year-end 2007, and was the only major airline to post a profit, $34

3 million, during the first quarter of During the past few months, and expecting to continue into the second half of 2008, Southwest has been right-sizing various Reno markets. In October 2007, Southwest reduced the Reno Oakland schedule by one daily departure and also reduced the Reno San Jose schedule by two daily departures, leaving a total of four daily departures to each market. The most recent right-sizing by Southwest occurred in May when Southwest discontinued one daily Reno Portland flight and one daily Reno Las Vegas, leaving four daily departures in the Portland market and twelve daily departures in the Las Vegas market. WN Frequency Reductions 2 SJC 1 OAK 1 PDX 1 LAS IN THE NEWS - AMERICAN AIRLINES: American Airlines has made local and national news by announcing a $15 fee to check a passengers first bag, a 10% to 11% cut in domestic air service throughout American s system, the grounding of 75 aircraft mostly MD-80s, as well as layoffs planned through 2008 in order to adjust to unprecedented fuel costs in the aviation industry. American s first round of cuts did not target any RNO markets but there is concern as American Airlines operates two of its three daily departures (RNO DFW) in MD-80 aircraft. On a positive note, the yield for the RNO-DFW route is at 14.3 cents, which falls right on the average yield that American Airlines is generating from all markets to DFW. RNO-DFW traffic is averaging load factors in the high 70 s to low 80 s percentile. As traffic is at or slightly above system load factor, and yield is even with their system average, it is reasonable to expect American Airlines to continue to serve RNO DFW.

4 SUMMARY MONTHLY PASSENGER AND CARGO STATISTICS Total passengers at RNO for the month of April 2008 declined 12.7% as compared to April The decrease in April traffic is attributed to several factors; Easter vacation/spring break falling in March versus April, increased air fares resulting from skyrocketing fuel costs and a seriously softening economy. Year-to-date, 1.6 million total passengers have flown in and out of RNO, which is a 5.78% decline versus the same period in This decline in total passengers is further reflected in an average 72.5% airline load factor for the month at RNO which is four points lower than April Airlines serving RNO were unable to fill existing capacity at the same level as last year due to a weak demand for the Reno-Tahoe region and the overall weakening economy impacting the visitor market. Total cargo was reported at 9,915,236 pounds, or 4,496.7 metric tons, during the month of April. This represents a 2.7% increase over April 2007, despite a slowing economy, high fuel costs, and a regional business shift to ground transportation. Year-to-date air cargo is off 2.26% compared to the first four months of TOTAL PASSENGERS During the month of April, 354,768 passengers flew through RNO, 12.67% fewer than the same period last year and the lowest monthly number of total passengers recorded in RNO since April The decrease in April traffic is attributed to several factors which include an early Easter vacation/spring break travel period falling in March rather than April, a soft ski season with lower-than-average snowfall resulting in most ski resorts closing by the end of April, no bowlers in 2008, a continuing soft economy and an economic downturn due to the record high prices of fuel. Year-to-date RNO traffic dipped 5.78% to 1,579,694 total passengers, 96,877 fewer passengers compared to TOTAL CARGO A total of 9,915,236 pounds, or 4,496.7 metric tons, handled during the month of April represents a 2.71% increase above the same month in 2007 and the greatest amount of air cargo ever handled at RTIA in the month of April. FedEx maintains the largest market share with 52.5% of the total cargo volume while UPS followed with 33.6%. Southwest Airlines reported the largest monthly year-over-year increase with 14.6% growth while FedEx and DHL both posted positive gains with 11.2% and 7.8% respectively. FedEx reported a high volume of military shipments departing out of Reno as the reason for the substantial increase in April. Year-to-date 2008 air cargo is down 2.26% for a total of 40,453,829 pounds. AIRLINE LOAD FACTORS RNO airlines reported a 72.5% average load factor for the month of April compared to a 76.5% load factor in This is the lowest April airline load factor reported since 2005 (68%), the most recent non-bowling year. The New York Times (NYT May 13, 2008) has

5 reported that for the first time in well over a year, domestic airlines are reporting declining load factors throughout the nation. In RNO, airline load factors were not only impacted by an early Easter and spring break during the month but the absence of approximately 20,000 bowlers, a soft end to the ski season and noticeably higher air fares which contributed to the four point decline in load factor. US Airways reported a significantly low 61.5% RNO load factor which is attributable to a weak demand and US Airway s decision to maintain higher pricing during the off-peak months of April and May. It should be noted that only one airline serving RNO exceeded their system wide average load factor during the month of April compared to four airlines in April The high cost of fuel and softening economy is anticipated to continue to impact passenger decisions to travel. Airline Reno LF System LF Difference Allegiant 84.4% 87.5% -3.1 Delta 81.4% 81.4% 0.0 Alaska / Horizon 78.7% 76.9% 1.8 Continental 78.4% 79.4% -1.0 Delta Connection* 78.3% 80.1% -1.8 American 76.4% 80.1% -3.7 United 70.2% 80.5% Southwest 63.2% 72.6% -9.4 US Airways 61.5% 83.2% ExpressJet 52.7% 63.0% *Delta Connection Inc. carrier includes SkyWest and ExpressJet AIRLINE MARKET SHARE Southwest Airlines reported the largest market share increase for the month of April gaining 2.2% for a market share of 49.7%. This is a direct result of regaining the business to and from Orange County following the Aloha Airlines bankruptcy and it appears that Southwest captured additional Bay Area business following United Airlines reduction of one daily nonstop to San Francisco. United Airlines and Alaska Airlines follow in sequence reporting 12.5% and 9.9% market share respectively. Airline APR APR Change Alaska 9.96% 8.58% 1.38 *Allegiant 0.53% n/a n/a *Aloha n/a 0.93% n/a American 7.84% 8.15% Continental 2.29% 3.47% Delta/Delta Connection 6.19% 5.54% 0.65 *Express Jet 2.19% n/a n/a Southwest 49.66% 47.46% 2.20 United 12.46% 14.11% US Airways 7.27% 7.94% Non-Scheduled 1.59% 1.42% 0.17 *Annual comparison not available

6 DOMESTIC AND INTERNATIONAL CHARTER PASSENGERS During the month of April, 5,757 charter passengers flew in and out of RNO, 1.8% less than one year earlier. The charter passenger decrease is representative of the softening of demand to Reno as reported by the Harrah s charter division. Year-to-date charter passenger traffic reflects a 5.7% increase. SCHEDULED DEPARTURES AND SEATS During the month of April, RNO reported 2,396 departures, 2.9% less than one year earlier. Monthly available seats totaling 280,200 represents an 8.5% decrease year over year. The reduction in seats is partially attributable to the percentage increase of regional jet (RJ) aircraft at RNO from 20% in 2007 to 31% in TOTAL OPERATIONS Total airport operations consisting of air carrier arrivals and departures, air taxi flights, general aviation landings and take-offs, and military aircraft operations decreased by 8.1% in the month of April compared to one year earlier. Significant reductions in air taxi and general aviation operations, impacted by high fuel costs, contributed to the decrease in total airport operations for the month. KTB

7 TOTAL PASSENGERS Jan Feb 490,000 Mar Apr May June 470,000 July Aug Sept 450,000 Oct Nov Dec PASSENGERS 430, , , , ,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PASSENGERS¹ PASSENGERS¹ Month Percent Change 2008 Percent Change January 409, , % 385, % February 401, , % 403, % March 465, , % 435, % 1st Q Total 1,276,244 1,270, % 1,224, % April 410, , % 354, % May 409, , % June 445, , % 2nd Q Total 1,265,078 1,285, % July 466, , % August 452, , % September 399, , % 3rd Q Total 1,319,059 1,337, % October 383, , % November 361, , % December 395, , % 4th Q Total 1,140,282 1,150, % TOTALS 5,000,663 5,043, % 1,579, % ¹Per Landing Reports % change YTD

8 TOTAL CARGO Jan Feb Mar Apr May June July Aug Sept Oct Dec CARGO POUNDS (in millions) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC CARGO (IN POUNDS) PERCENT Month METRIC TONS CHANGE January 9,545,594 10,293,920 11,231,880 5, % February 8,515,885 10,313,441 9,786,730 4, % March 10,126,307 11,129,070 9,519,983 4, % 1st Quarter 28,187,786 31,736,431 30,538,593 13, % April 8,665,756 9,653,603 9,915,236 4, % May 9,363,233 10,718,860 June 9,772,322 10,483,160 2nd Quarter 27,801,311 30,855,623 July 9,580,355 10,377,947 August 11,153,394 11,736,465 September 10,256,974 10,311,212 3rd Quarter 30,990,723 32,425,624 October 10,408,180 10,813,406 November 10,859,489 10,646,261 December 14,242,702 12,772,059 4th Quarter 35,510,371 34,231,726 TOTALS 122,490, ,249,404 40,453,829 18, % % change YTD

9 MONTHLY ENPLANED PASSENGERS PASSENGERS¹ Jan Month DIFFERENCE Feb January 206, , , % Mar February 197, , , % Apr March 229, , , % May April 205, , , % June May 201, ,369 July June 218, ,577 Aug July 230, ,238 Sept August 222, ,031 Oct September 201, ,578 Nov October 191, ,499 Dec November 177, ,384 December 191, ,472 TOTALS 2,473,508 2,492, , % ¹Per Landing Reports Monthly Enplaned Passengers 250, , , ,000 PASSENGERS 210, , , , , , ,000 January February March April May June July August September October November December

10 MONTHLY DEPLANED PASSENGERS PASSENGERS¹ Month DIFFERENCE Jan January 201, , , % Feb February 201, , , % Mar March 233, , , % Apr April 201, , , % May May 205, ,521 June June 223, ,762 July July 232, ,323 Aug August 227, ,540 Sept September 195, ,908 Oct October 188, ,508 Nov November 179, ,392 Dec December 202, ,988 TOTALS 2,493,250 2,516, , % ¹Per Landing Reports - Scheduled and Charter Monthly Deplaned Passengers PASSENGERS 250, , , , , , , , , , ,000 January February March April May June July August September October November December

11 MONTHLY ENPLANED PASSENGER LOAD FACTOR SUMMARY % 95.00% 90.00% 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 45.00% 40.00% Monthly Load Factor Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % 80.57% 83.71% 81.83% 80.28% 85.37% 85.29% 81.23% 79.74% 74.69% 71.90% 73.30% % 75.70% 81.80% 76.45% 77.46% 82.96% 80.80% 81.90% 75.80% 77.00% 71.10% 69.30% % 75.06% 75.20% 72.51% ENPLANED PASSENGERS* LOAD FACTOR (%) DIFFERENCE Month (2008 / 2007) January 206, , , February 197, , , March 229, , , April 205, , , May 201, , June 218, , July 230, , August 222, , September 201, , October 191, , November 177, , December 191, , *** 2,473,508 2,492, , * Per Landing Reports *** AVERAGE OF AIRLINE LOAD FACTORS

12 LOAD FACTOR BY AIRLINE Carrier Seats Available Enplaned Passengers 2008 Load Factor (%) 2007 Load Factor (%) Difference Alaska / Horizon 23,550 19, % 78.4% 0.3 Allegiant 1,950 1, % n/a n/a American* 19,400 17, % 86.1% -9.7 Continental 9,964 8, % 79.3% -0.9 Delta 13,290 11, % 89.2% -7.8 Delta Connection 6,765 5, % 94.5% ExpressJet 7,700 4, % n/a n/a Southwest 160, , % 64.7% -1.5 United 37,424 28, % 79.1% -8.8 US Airways 21,878 15, % 64.9% -3.4 Frontier n/a n/a n/a 75.4% n/a Atlantic Southeast n/a n/a n/a 77.7% n/a ** 302, , % 78.9% -6.4 *LOAD FACTORS REPORTED BY AIRLINES ** AVERAGE OF AIRLINE LOAD FACTORS Airline Load Factor 90.0% 80.0% 70.0% Average 72.5% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Alaska / Horizon Allegiant American* Continental Delta Delta Connection ExpressJet Southwest United US Airways

13 DAILY ENPLANED SEATS AVAILABLE 10,800 10,600 10,400 10,200 10,000 9,800 9,600 9,400 9,200 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ,018 10,192 10,190 9,763 9,763 9,851 9,977 9,981 10,016 9,950 9,724 10, ,130 10,099 10,505 10,332 10,430 10,633 10,633 10,633 10,329 10,122 9,901 10, ,064 10,256 10,153 9,

14 TOTAL AIR CARRIER MARKET SHARE Carrier Passengers Alaska Air Group 35, % Allegiant 1, % American 27, % Continental 8, % Delta 13, % Delta Connection* 8, % ExpressJet 7, % Southwest 176, % United 44, % US Airways 25, % Non-Scheduled 5, % Totals 354, % *Delta Connection carriers: ExpressJet and SkyWest Percentage of Total Delta, 3.7% Alaska Air Group, 10.0% Allegiant, 0.5% American, 7.8% Continental, 2.3% Delta Connection*, 2.5% ExpressJet, 2.2% Non-Scheduled, 1.6% US Airways, 7.3% Southwest, 49.7% United, 12.5%

15 TOTAL AIRLINE MARKET SHARE Carrier Passengers Percentage of Total Alaska Air Group 35, % Allegiant 1, % American 27, % Continental 8, % Delta 13, % ExpressJet - Delta 3, % ExpressJet - Branded 7, % Mesa Air Group 6, % Skywest 5, % Southwest 176, % United 44, % US Airways 20, % Non-Scheduled 5, % Totals 355, % *Delta Connection carriers: ExpressJet and SkyWest ExpressJet - Delta, 1.1% Allegiant, 0.5% Alaska Air Group, 10.0% American, 7.8% Continental, 2.3% Delta, 3.7% ExpressJet - Branded, 2.2% Mesa Air Group, 1.7% Skywest, 1.4% Non-Scheduled, 1.6% US Airways, 5.7% United, 12.4% Southwest, 49.6%

16 Jan TOTAL PASSENGERS DOMESTIC & INTERNATIONAL DOMESTIC SCHEDULED PASSENGERS Feb Mar Apr 550,000 May June July 500,000 Aug Sept Oct Nov Dec PASSENGERS 450, , , ,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DOMESTIC CHARTER PASSENGERS 7,000 6,000 5,000 PASSENGERS 4,000 3,000 2,000 1,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DOMESTIC¹ INTERNATIONAL¹ 2008 TOTAL 2008 Charter 2007 Charter DIFFERENCE MONTH Scheduled Charter Scheduled Charter Passengers Passengers Passengers Passengers January 381,103 4, ,612 4,509 3, % February 399,602 4, ,819 4,217 4, % March 429,293 6, ,495 6,202 6, % April 349,113 5, ,768 5,655 5, % May June July August September October November December TOTALS 1,559,111 20, ,579,694 20,583 19, % ¹Per Landing Reports

17 2,700 MONTHLY SCHEDULED DEPARTURES 2,600 2,500 2,400 2,300 2,200 2,100 2,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ,365 2,256 2,429 2,375 2,371 2,351 2,409 2,441 2,310 2,395 2,271 2, ,462 2,239 2,534 2,468 2,520 2,544 2,628 2,644 2,449 2,489 2,408 2, ,608 2,434 2,598 2,396

18 350,000 MONTHLY AVAILABLE SEATS 330, , , , , ,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC , , , , , , , , , , , , , , , , , , , , , , , , , , , ,220

19 TOTAL OPERATIONS 15,000 14,000 13,000 Number of Operations 12,000 11,000 10,000 9,000 8,000 7,000 6,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of Operations 07 to 08 Percent Month Change January 11,147 12,628 10, % February 10,730 10,322 10, % March 10,595 13,933 10, % April 10,979 11,424 10, % May 12,579 12,734 June 12,956 11,733 July 11,977 12,657 August 13,421 12,057 September 13,430 11,706 October 12,494 10,934 November 10,528 10,624 December 10,891 10,054 TOTALS 141, ,806 42, % % change YTD