Results of the latest passenger leakage report prompted officials of the Chattanooga Metropolitan Airport to ask plainly and honestly that locals fly out of CHA.
“We need to create rabid fans in our community for this hometown airport,” said Kristen Behm, vice president of public relations and air service development.
Michael Lum, managing partner at Voltaire Aviation Consulting, presented research results at the airport’s February commission meeting Monday.
The city retained 61 percent of potential passengers while the county retained 58 percent. The total catchment area of 177 ZIP codes retained 39 percent of potential passengers, down from 44.9 percent retained in the last leakage study five years ago.
“It still isn't great,” said Commissioner Chris Sugden.
“No, it’s not,” said Mr. Lum.
Of leaked passengers, 23 percent were lost to Nashville and 32 percent to Atlanta.
In her report to the commissioners, airport President and CEO April Cameron said the airport’s seat capacity is set to surpass pre-pandemic 2019 numbers in May this year.
“We are utilizing all the seats, and they are giving us new seats,” she said of the air carriers. She said the more seats carriers add, the more profitable they become.
“It’s very important that the community continue to support the seat capacity that we have,” she said.
Mr. Lum reported that Chattanooga sees 1,200 passengers a day, losing 2,665 more to other airports.
But the total of those two numbers, 3,865 potential passengers, is Chattanooga’s “true market size,” Mr. Lum said. This number attracts carriers.
Chattanooga’s load factors hover at 88 percent. Ultra-low-cost carrier Allegiant reports a 95 percent load factor. Mr. Lum said Allegiant can lower its fares to rock bottom but still make money on ancillary products such as seat selection, priority boarding and food and beverage sales during the flight.
Mr. Lum said potential customers are driving to Nashville and Atlanta for nonstop flights and also for lower fares.
The average one-way ticket price in Chattanooga, without taxes and fees, is $232, above the $183 average in the Lower 48.
“Those fares drive people to those airports.” said Mr. Lum. “There are decent fares in Chattanooga. They’re not all sky-high fares,” he said.
Low-cost carrier Southwest took 75 percent of the Nashville leakage and 13.5 percent of the total leakage.
Mr. Lum said Chattanooga’s nonstop destinations lose the fewest passengers to other cities.
“We do a pretty good job when we have nonstop service,” said Mr. Lum.
Chattanooga will offer 10 nonstop destinations this year when it adds Las Vegas in May and Miami in June. Mr. Lum predicted that Chattanooga will offer 14 nonstop destinations within the next four years.
New York City’s shortage of air traffic controllers puts it in an unpredictable holding pattern, likely out of reach in the short term. Though the industry had expected relief in October from voluntary cutbacks in air traffic, Mr. Lum said the cutbacks may not actually be voluntary, and they may be extended another year.
But, as Delta Air Lines’ connecting flights from Chattanooga fill up, Mr. Lum said the carrier will eventually offer a nonstop flight to those final destinations to free seats for other Atlanta connections.
Top domestic destinations from Chattanooga are New York City, South Florida, Orlando and Los Angeles. Mr. Lum said most leaked domestic passengers went to Nashville.
Chattanooga’s top international destinations are Mexico City, London and Cancun. Mr. Lum credited the auto industry with the high traffic to Mexico City.
The study did not differentiate between leisure travel and business travel, but Nashville’s new spot on the map as a leisure destination has made it a contender in the last four years, Mr. Lum said.
Asheville, N.C., has its own inbound leisure market, too. The city grew its service during the pandemic and has been able to retain it, Mr. Lum said.
The Knoxville metro area has 900,000 people, compared with the Chattanooga metro area’s 600,000, and it’s far enough from other major cities to keep more of its traffic.
Chattanooga’s cost to the carrier per enplanement is $6.
“That’s very attractive,” Mr. Lunn said. “It’s already low.” He said ultra-low-cost carriers Breeze Airways and Frontier Airlines want $5, but they have been found in cities with $8. He said Breeze is learning it can make money on flights to South Florida and that the company is exploring long-haul flights to Los Angeles.
“I think that jury is still out,” he said.
Volaire’s study draws data from two years: third quarter 2021 through second quarter 2023.
Ms. Cameron reported airport enplanements ended 2023 at 487,829, which is 13 percent above 2022 numbers and 13 percent below pre-pandemic 2019.
TERMINAL EXPANSION GRAND OPENING
The grand opening for the terminal expansion is set for March 2. Finishing touches are coming in, including jet bridges, furniture and Dan Reynolds photography. Delta Air Lines will occupy the two new gates in the expansion.
Commission Chairman Jim Hall announced new committees:
Marketing Committee
Chip Baker
David LittleJohn
Santosh Sankar
Finance Committee
James E. Hall
Daniel R. Jacobson
Harriette Stokes
Personnel Committee
Dr. Paul Conn
Tom Snow
Chris Sugden
Planning Committee
James E. Hall
Tom Snow
Daniel R. Jacobson