McCarran sees more fliers in February

The 2.9 million people that passed through the airport in February marked a 2.4 percent increase from one year ago and came on top of the 5 percent gain recorded in January. Much like the total visitor numbers, January’s count was inflated by a calendar fluke that saw a couple of major conventions move one month ahead from their previous slots.

Still, the last time consecutive monthly increases took place was October 2007, before the twin punches of recession and US Airways’ decision to dismantle its McCarran hub precipitated a major drop in air traffic.

The busier times at the airport this year come in the face of rising ticket prices that started last autumn and have continued into this year in tandem with escalating oil prices. This year alone, according to a research note by Deutsche Bank analyst Sigalet Grego, airlines have pushed through six broad-based air fare hikes, including five in which Southwest participated. Several other attempts were rolled back in the face of competitive pressure.

McCarran management projected that passenger counts for the fiscal year to end June 30 would be flat. Because traffic slipped 0.5 percent in the six months through December, that would mean a slight increase during the first half of this year.

Despite the higher ticket prices, Clark County Aviation Director Randall Walker has seen no reason at this point to revise the forecast. But oil remaining above $100 a barrel “on a sustained basis” — the closing price on Friday was $101.62 — could lead to lower estimates.

Grego wrote that airline revenue benchmarks, which have continued to improve, “signify the industry’s success in passing on fare increases, as demand thus far has remained resilient despite increased pricing.”

Although airlines have also started trimming their growth plans in response to oil prices, the flight schedules into Las Vegas will grow during second quarter, according to Hudson Securities analyst Robert LaFleur. He saw this as a sign that the economy would continue to “unfold as expected,” but along a “choppy” path.

Don Voss, the vice president of sales and marketing at Treasure Island, underscored the role air service plays in an economic rebound. When asked about the city’s image as a business conference site, he replied via email, “Quite frankly, we are more concerned about major airlines adding lift to Las Vegas than we are with creating interest in the meetings business.”

During February, market leader Southwest carried 2.1 percent more passengers and No. 2 Delta was up 0.7 percent. United and Continental, now jointly owned, both cut back, with United down 10.1 percent.

International traffic has continued to show declines, as the hole left by the demise by Mexicana last year has not been filled by the expansion of others, notably AeroMexico and Canadian discounter WestJet.

Contact reporter Tim O’Reiley at toreiley
@reviewjournal.com or 702-387-5290.