Enplanements decline in Fort Smith, XNA and Little Rock

The second quarter of 2011 is not off to a good start with respect to enplanements at the Fort Smith Regional Airport.

May saw enplanements at the Fort Smith Regional Airport total 7,488, down 3.5% compared to May 2010, with an 11.4% decline in American Airlines passengers out of Fort Smith to blame for the dip.

Year-to-date, enplanements total 32,308, up a scant 0.24% compared to the 2010 period. Year-to-date enplanements were up 6.7% at the end of the first quarter of 2011.

Enplanements at the airport totaled 86,129 during 2010, up 9.81% over 2009 — an increase that ended two consecutive years of enplanement declines at the airport. Enplanements in 2009 at the Fort Smith airport totaled 78,432, down 9.8% from the 87,030 enplanements in 2008. Passenger enplanements at the Fort Smith Regional Airport totaled 87,030 in 2008, down 12.2% from the 99,127 enplanements in 2007. The 2009 traffic total was the lowest at the airport in the past 10 years.

Delta, flying passengers to and from its Memphis hub, continues to see increases in passengers out of Fort Smith. For the first five months of 2011, Delta enplanements out of Fort Smith total 13,735, up 24.9% compared to the 2010 period.

Year-to-date, Delta reports 9.618 million passengers in its domestic regional system, down 3% compared to the 2010 period.

American Airlines (American Eagle), which connects Fort Smith travelers to Dallas-Fort Worth, had 4,438 enplanements out of Fort Smith in May, down compared to the 5,013 in May 2010. For the first five months of 2011, American had 18,573 enplanements out of Fort Smith, down 12.55% compared to the 2010 period.

American Eagle reported 6.704 million passenger boardings during the first five months of 2011, up 4.6% compared to the 2010 period. The airline had 1.542 million passengers in May, up 10.6% compared to May 2010.

ARKANSAS TRAFFIC
Northwest Arkansas Regional Airport (XNA) also saw an enplanement decline in April. The airport had 45,549 enplanements for the month, down 2.7% compared to April 2010. However, enplanements for the first four months of 2011 total 173,681, up 3.53% over the 2010 period. (As of June 7, XNA did not have enplanement figures for May.)

During 2010, XNA had 570,625 enplanements, up 5.49% over 2009.

Enplanements are also declining at Little Rock National Airport. April enplanements there totaled 86,187, down 8.23%. For the first four months of 2011, Little Rock enplanements total 321,556, down 6.87% compared to the 2010 period. In 2010, the airport had 1.129 million enplanements, down 3.8% compared to 2009, and down 5.3% from 2008.

NATIONAL ISSUES
Higher fuel prices continue to force the industry to reduce the number of planes in service and raise ticket prices and fees. Those actions typically lower the number of airline travelers.

Zack’s Equity Research recently reported that rising fuel prices are expected to increase Delta’s 2011 fuel expenses by $3 billion, or 35% more than in 2010., thereby hurting its profitability.

Air Transport Association officials estimate that a $1 increase in a barrel of oil costs the U.S. airline industry $415 million a year.

Zacks said Delta plans to cut 3% of domestic capacity, including a 25% reduction in departure at its Memphis hub with a 140 aircraft reduction.

“Although the aggressive fare hike actions and capacity cuts will help Delta to counter higher fuel costs, it might hurt revenue and profitability throughout 2011,” noted the Zacks report.