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Oct. 28, 2008
Copyright © Las Vegas Review-Journal

TRAVEL AND TOURISM: McCarran flier count flagging

September drop is 11th straight monthly decline

By BENJAMIN SPILLMAN
REVIEW-JOURNAL

Travelers line up to catch a taxi on Monday at McCarran International Airport. The number of people flying to and from Las Vegas fell 13.2 percent in September, data show.
Photo by Jessica Ebelhar.

The number of people flying to and from Las Vegas fell 13.2 percent in September to 3.37 million, the largest year-over-year decline since the months following Sept. 11, 2001, and the 11th consecutive monthly dip.

It's another major indicator that the woes of the airline industry, dire economic news and an emerging recession are battering a Southern Nevada economy that blossomed with cheap oil, easy consumer credit and the boom in home and property values.

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    • Airlines deliver about half of the nearly 40 million people who visit Las Vegas annually. And last month their results were dismal compared with September 2007, which appears now to be near the end of the boom that began when the local economy roared back from the post-Sept. 11 recession.

    "As the economy weakens, it creates more uncertainty," US Airways President Scott Kirby said recently during a discussion of the airline's quarterly earnings.

    The uncertainty translated to fewer Las Vegas passengers for nearly all the major carriers at McCarran International Airport.

    Business for Southwest, the largest carrier at McCarran, fell 8.7 percent to 1.2 million arrivals and departures.

    US Airways, the second-largest carrier, posted a 30.6 percent decline, largely due to major capacity cutbacks set into motion months ago as a reaction to high fuel prices and a worsening economic outlook.

    United was down 8.3 percent, Delta fell 5.9 percent and American fell 3.1 percent.

    Even Las Vegas-based Allegiant, which is one of a small number of successful domestic airlines, had its traffic fall 4 percent for the month.

    For the year, traffic at McCarran slipped further behind last year's pace and now stands at 34.1 million through September, down 5.7 percent from the same point last year.

    Individual airlines aren't faring much better.

    Southwest is down 0.6 percent through September to 12.1 million arrivals and departures. US Airways is down 22.3 percent, United is down 7.2 percent and Delta is down 3.6 percent.

    American, with a 1.1 percent increase through September, is the only top five McCarran airline to show improvement over 2007. Allegiant, which is just outside the top five, is up 2.4 percent on the year.

    On the international side, overall numbers from Terminal 2 are up 5.7 percent on the year but down 2.9 percent in September.

    Discount Canadian carrier WestJet continues to show strong increases at McCarran. The airline is up 59.1 percent on the year and increased 59.6 percent in September.

    The continued bleak economic news is clearly affecting Las Vegas traffic, US Airways officials said.

    "When the headlines are bad, bookings for 60 days out are weakening," Kirby said.

    Also, with fuel prices still high relative to their overall history, customer reluctance to pay high fares to travel to Las Vegas makes it unprofitable to serve the market.

    "You need in excess of 100 percent load factor to break even," Kirby said, referring to the rate that describes the percentage of full seats on a given flight.

    Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.

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    willy wrote on October 28, 2008 10:57 PM: People who all whine about service should spend some time in places like NYC or even some LA hotels. Night and day, Vegas will always give you better service.

    Most of the whiners on price complain because Wynn refuses to lower his rates and the Bellagio and Venetian have enough foreign guests they don't need to drop rates either. Tons of good deals are out there, but they aren't selling caviar and champagne on the 99 cent menu.


    alwaysgonnabehere wrote on October 28, 2008 09:43 PM: Harris you wish! Las Vegas will be here a lot longer than you think. Tourism around the world is hit by the bad economy. Just because the economy is bad doesn't mean Vegas has to cater to a**holes like you. To get respect you have to give respect. There's a reason that there's a certain few people that always complain about bad service get bad service. The numbers might be down a bit but millions of visitors still love Vegas and will continue to come.


    Harris wrote on October 28, 2008 07:19 PM: Hey, welcome to Las Vegas where we bend you over every chance we get, our service sucks, we only speak Spanish, i can help you tomorrow when i am off hehe. No tourism, no dollars, looks like many homes will be left to the bugs and snakes until i come in and buy you out for pennies on the dollar. You Las Vegans need tourism real bad, and if i were you i would change attitude.


    tw wrote on October 28, 2008 04:39 PM: Maybe the casinos and their employees will finally wake up and realize its not about them...it's about their customers.

    But somehow I doubt it.


    soundsbittertome wrote on October 28, 2008 02:37 PM: Now would Mr. Medium roller be about let's say 300lbs, wearing his 10 gallon hat and cattle horn belt buckle, rude to casino employees by talking down at them, carry 2 plates through the buffet line, a bad tipper and looking for $1 blackjack?

    *If that's the case stay out of Las Vegas!


    to mr. medium roller wrote on October 28, 2008 11:35 AM: Well Obama has my vote, because the fact is, I don't need you. What an idiotic ploy to sway voters.


    Oh Really to Medium Roller wrote on October 28, 2008 11:34 AM: Hey Medium Roller:

    To be affected by Obama's tax increase plan, you would have to make $250K plus. If you are making that kind of money and have to eliminate 3 trips, we don't need you here because you can afford to properly tip our workers...so save the lecture for someone else. Better yet, San Antonio is a great town. Frequent there and stop complaining. Thanks


    Medium roller wrote on October 28, 2008 10:13 AM: Lets put it this way, I live in Texas, travel to your state four times a year. If obama wins with his tax plan on me(small business owner) I will be headed out there ONE time a YEAR.
    You do the MATH.
    YOU need me I don't need YOU.
    What part of that(if you are a casino worker voting for obama) don't you understand.
    We will see. A vote for Obama means a Vote against Me(your meal ticket-see above article).


    Becky wrote on October 28, 2008 07:38 AM: Funny, I can afford the airfare to Vegas, but getting a decent hotel room at a decent price is next to impossible. Would have thought the room rates would have better, just to get me and my money to town.


    mitch wrote on October 28, 2008 07:08 AM: What is not mentioned is how much the airlines have cut capacity in and out of Vegas. Planes are full but there are less seats available, so there are less people flying in. The fuel price issue mentioned is a red herring - fuel has come down in price but most airlines continue to charge a fuel surcharge.


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