August 8, 2024

Momentum at PSP Still Positive After Recently Announced Flight Cuts

By Bob Marra

Aircraft parked at the Sonny Bono Concourse at PSP (Photo courtesy of Visit Greater Palm Springs)

The long run of very positive news for expanding flight service at Palm Springs International Airport (PSP) took a hit in July with announcements by two airlines about significant flights that will be discontinued. Both American Airlines and JetBlue Airways have announced the cessation of flights to and from PSP. These decisions come amid broader strategic shifts by the airlines, impacting passengers and local connectivity in several regions of the United States.

American Airlines Cuts Seasonal Flights from Austin

As part of several significant cuts to its route network, American Airlines announced the elimination of its seasonal service between Austin-Bergstrom International Airport (AUS) and Palm Springs. The airline announced that it would cut five nonstop routes from Austin, adding to over 20 route cuts since November. The Palm Springs service, along with routes to Las Vegas, New Orleans, Orlando, and Reno, will end in October.

In a statement, an American Airlines spokesperson said, “As part of the continuous evaluation of our network, American will reduce service from Austin starting in October. American will continue to offer customers access to our comprehensive global network of more than 350 destinations with one-stop connections.”

The decision to cut the Palm Springs route is part of a broader trend where airlines are reevaluating their route networks in response to changing passenger demand and operational challenges. American Airlines has seen a decline in passenger numbers in Austin, prompting the carrier to adjust its services and focus on more profitable routes.

JetBlue Airways Ends Seasonal Service to New York

JetBlue Airways announced earlier in July that it has decided to discontinue its seasonal service between Palm Springs and John F. Kennedy International Airport (JFK) in New York. The airline cited underperformance and lack of customer demand as the primary reasons for the termination of this route. According to the Palm Springs International website, JetBlue’s service to Palm Springs was first launched in 2016 and was scheduled to resume on December 19.

In a statement, JetBlue acknowledged the difficulty of exiting the market: “Exiting a market is a difficult decision, and we were privileged to have served Palm Springs. Due to underperformance and lack of customer demand, JetBlue will not resume its New York-Palm Springs service, thus ending operations in Palm Springs.”

The announcement follows JetBlue’s strategic shift to focus more on the East Coast and its decision to terminate a planned merger with Spirit Airlines. As part of its efforts to return to profitability, JetBlue is reducing flights on underperforming routes and increasing its presence in more profitable regions such as Northeast Florida and the Caribbean.

With JetBlue’s departure, Alaska Airlines would have been the sole carrier offering nonstop flights between Palm Springs and JFK. Their daily service will return in October.

Delta Picks Jumps in With Weekly PSP/JFK Flights

Fortunately, Delta Air Lines has announced the launch of new nonstop service from PSP to John F. Kennedy International Airport (JFK) in New York City. The great news comes three weeks after JetBlue Airways announced that it has decided to discontinue its seasonal service between PSP and JFK. JetBlue’s service to Palm Springs was first launched in 2016 and was supposed to resume on December 19. The announcement followed JetBlue’s stated strategic shift to focus more on the East Coast and its decision to terminate a planned merger with Spirit Airlines.

The new Delta Airlines seasonal Saturday-only service will begin on December 21, 2024, and runs through May 3, 2025.

Impacts on PSP

For PSP, the loss of the daily nonstop Austin and New York City flights means fewer options for travelers to important destinations, but it’s probably too early to be concerned about a widening negative trend for Greater Palm Springs, especially considering the new Delta NYC announcement.

According to the latest PSP monthly commercial passenger activity report, through June this year overall passenger traffic is up 1.2%. While that might not look like lighting it up, it should be noted that in 2023, PSP set a record of serving roughly 3.24 million passengers, setting all-time high records in eight of the months that year. The number of available scheduled seats increased by 7.7% in 2023 to a record high of 2,101,693. In all, 2023 passenger traffic at PSP ended the year up 8.6% overall. In 2022, PSP served 2.98 million passengers.

As the aviation industry continues to navigate post-pandemic recovery and economic pressures, further adjustments in airline routes and services are likely, making it essential for regional airports to stay agile and responsive to these changes.

Flights Added This Year Help Soften the Blow

Perhaps another hot streak for PSP is already starting based on the August 1 announcement that Porter Airlines will launch nonstop flights between Toronto-Pearson International Airport (YYZ) and PSP this December. The seasonal winter service, starting December 12, will offer three weekly flights.

Passengers will be able to access numerous connections with Porter’s airline partners to travel onwards to Europe through Toronto-Pearson. With the addition of the Palm Springs flight, Porter now serves four California cities nonstop from Toronto-Pearson. The three other cities include Los Angeles, San Diego, and San Francisco.

“We are thrilled to welcome Porter Airlines’ new nonstop seasonal service between Palm Springs and Toronto,” said Scott White, President & CEO of Visit Greater Palm Springs. “This exciting new service from Porter not only strengthens the connection between our two vibrant regions but also provides an exceptional opportunity for travelers to experience the unique beauty, culture, and hospitality of Greater Palm Springs. We look forward to sharing our sunny skies and beautiful desert oasis with our friends from Toronto and beyond.”

Porter Airlines will add nonstop service between PSP and Toronto’s YYZ airports starting in December

In May, United Airlines announced new, nonstop service to Washington, D.C., connecting Greater Palm Springs directly with Washington Dulles International Airport (IAD). The new service begins December 19 and will operate daily until April 30, 2025.

Also on the positive side, Avelo Airlines extended its service from Palm Springs to Santa Rosa, CA, through the summer, increasing the number of nonstop flights to 13 airports over the summer months, more than ever before, with quick one-stop connections to more than 230 global cities.

Improvements and Expansion at PSP

The discontinuation of the two noted flights may come as somewhat of a surprise after a two-year period when the airline industry has recovered from the COVID pandemic. But considering all the momentum generated especially during 2023, these setbacks should be considered minor when looking at the big picture for PSP and Greater Palm Springs.

In addition to the numerous flights added and record-breaking passenger traffic since the pandemic, PSP has been making exceptional strides in other aspects of the airport’s operations that greatly enhance the air travel options and in-airport experience for local travelers and improve upon the already excellent experience of visitors to Greater Palm Springs. Some of the many recent improvements and upgrades include:

Infrastructure Upgrades

PSP has made substantial investments in its infrastructure to improve passenger experience and operational efficiency. Among these improvements is the expansion of the baggage claim area, designed to handle the increasing passenger traffic more effectively. The terminal restrooms have undergone a comprehensive remodeling to enhance cleanliness and accessibility. New shade structures have been installed to provide comfort for passengers waiting outside, particularly during the hot summer months. Looking ahead, the airport is actively planning a major terminal expansion to further boost capacity and streamline passenger flow as part of its ongoing Master Plan process​​​.

Airline Incentives

In June, the Palm Springs City Council approved a comprehensive new Air Service Incentive Program for the airport, designed to attract new airlines and expand existing routes. The initiative responds to rising competition and the need to enhance the airport’s domestic and international connectivity.

Local Business and Community Engagement

Strengthening ties with the local community has been a focal point for PSP. The airport has forged robust partnerships with local businesses to recreate the food/beverage and retail offerings stacked with local purveyors. Some of the many new food/beverage options include Nine Cities Craft, a full-service restaurant inspired by midcentury modern design offering locally sourced craft beers and desert-inspired cocktails; Coachella Valley Coffee; Santa Rosa Kitchen & Spirits; PSP Wine Bar; Vino Volo, and Half Moon Empanadas. Local high-profile restaurants, Las Casuelas Terraza and Trio are expected to open soon.

PSP Coffee is one of many new amenities at the airport (Photo courtesy of Visit Greater Palm Springs)

As part of an effort to boost local patronage at the airport, PSP has introduced the “Stay and Play” pass, which allows non-travelers to access the terminal for dining, shopping, and greeting arriving passengers.

Sustainability Initiatives

In a bid to enhance its environmental stewardship, PSP has rolled out a series of sustainability initiatives. The installation of solar power systems is a key component, reducing reliance on non-renewable energy sources and significantly cutting the airport’s carbon footprint. Additionally, PSP has introduced comprehensive waste reduction programs, including recycling and composting initiatives aimed at minimizing landfill waste.

Financial Success

Financially, the airport reported an increase of over $9 million in operating revenue in 2023, driven by higher airline fees, transportation services, dining, and retail operations. This financial growth underpins PSP’s ongoing and future projects.

Rebranding

PSP has embarked on a rebranding effort that introduced a new logo and a redesigned website. These enhancements enhance the user experience and provide comprehensive information about the airport’s services and operations.

                 

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