Atlanta's Hartsfield-Jackson Airport is the latest to consider capital spending cutbacks in the wake of the anticipated airline capacity cuts this fall.
The Atlanta airport has whacked $225 million from its capital program and has contemplated $50 million in further capital project cuts, according to a report from the American Association of Airport Executives. Certain projects, like the international terminal and new rental car facility, have apparently been spared the ax, for now.
Airlines large and small have announced major capacity cuts, and as a result, airports across the country are looking at ways to make up the losses or close the financial gap by cutting back on improvements.
Looking at an 8.8% drop in the number of airline seats flying in and out its terminals this fall compared with 2007, Phoenix Sky Harbor Airport is deferring some construction projects and cutting its operating budget by $8 million. The loss in passengers will mean a 6% drop in airport revenue this year, to $400 million.
The airport is planning to defer taxiway and facility improvements, but it hopes to continue with development plans for a people-mover train system within the airport and linking terminals to the city's planned Metro Light Rail system.
In California, Oakland Airport has postponed plans for a $500 million terminal after it lost a handful of airlines, reducing passenger traffic by nearly a quarter.
Los Angeles World Airports, which operates four airports, including LAX and Ontario, said it may have to push back some of its long-term projects. Ontario is looking at a 20% drop in passenger traffic; it just increased its landing fees to $2.70 from $2.43 for every 1,000 pounds. In San Luis Obispo, Calif., where Delta is dropping service after just one year, the airport has put a $60 million plan for a new terminal and parking garage on hold.
Ten projects were delayed at Las Vegas' McCarran Airport after the Clark County Commission voted to cut $360 million from $3.7 billion in planned improvements.
Even Dallas-Fort Worth Airport is feeling the pinch. Looking at a 7% drop in the number of passengers for the fiscal year starting Oct. 1, the airport is reviewing its expansion plans.