Traffic may hit 6-year high in ’08

Flights from two new airlines will boost passenger traffic next year to a six-year high, the Colorado Springs Airport forecasts in its 2008 budget.

The forecast anticipates 1.04 million passengers will board departing flights next year, up nearly 2 percent from an estimated 1.02 million passengers this year. The forecasted total would be the highest since the airport’s passenger numbers totaled 1.07 million in 2002.

Traffic estimates for this year and next year were revised higher last month from those made in July as a result of surging traffic in recent months, said Gisela Shanahan, the airport’s assistant aviation director for finance and administration.

“We are assuming a 2 percent increase because national forecasts for air travel are calling for a 2 to 3 percent increase and we wanted to be conservative,” Shanahan said. “It assumes no new air service next year, so any new flights would increase the forecast.”

Passenger numbers in September were up 9.1 percent, the biggest increase in 3½ years, and airport officials are “anticipating another strong month in October,” based on activity so far this month that could trigger another upward revision in the forecasts, Shanahan said.

Traffic has increased in each of the past four months after declining for 10 of the 11 previous months. Airlines cut passenger capacity here in response to weight restrictions triggered by the 16-month closure of the airport’s main runway that ended May 23.

Nearly all the gains have come from ExpressJet and Midwest airlines, which began serving the Springs in April and July, respectively. Passengers on flights operated by the two airlines made up 95 percent of last month’s 7,562 gain in passengers from a year ago.

Rising passenger numbers are expected to fuel a 7.2 percent jump in airport revenues next year to $24.9 million, which include a 7.2 percent increase in airline payments, a 7.8 percent gain in parking revenue and a 12.6 percent surge in concession revenue.

The budget calls for expenses to rise 3.4 percent from this year to $21.7 million, mostly from an 8.4 percent jump in salaries and benefits and a 12.6 percent increase in capital spending, some of which had been deferred while the main runway was rebuilt, Shanahan said.

The cost per passenger is expected to jump nearly 17 percent next year to $7.89, mostly because the deferred maintenance kept rates lower this year, Shanahan said. The airport has spent 7.1 percent less than budgeted during the first nine months of this year.

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EXPECTED REVENUE JUMP

7.2 percent increase in airline payments

7.8 percent gain in parking revenue

12.6 percent surge in concession revenue