Airport is feeling the recession crunch

Airport parking lots are less crowded, and lines for a seat at an airport restaurant, or to get through security, might be shorter.

The recession and cost-conscious travelers are crimping not just airlines but airports across the country, including Philadelphia International.

Passenger traffic at Philadelphia airport was down 6.7 percent from January through May, while aircraft traffic (takeoffs and landings) was down 5.6 percent during the same period.

"There's no doubt that we are down across the board," said acting Aviation Director Mark Gale. "Parking is down, car rentals are down, sales from concessions are down. All these non-airline revenues are down, which feeds into the airport's budget."

Philadelphia International gets the bulk of its operating budget from airlines - $153 million in fiscal year 2009. The remainder - $117 million - came from businesses operating at the airport.

To avoid hefty airline rate increases to offset an expected shortfall, the airport is considering deferring some maintenance projects, spending cash reserves, and leaving job vacancies unfilled, Gale said.

"We have not laid anybody off at this point," he said. "One thing we will look at is the number of jobs, and, particularly, the number of vacancies. We may have to forgo filling them in order to reduce our operating budget."

All but 10 of the 775 city employees at the airport, like all city workers, have been asked by Mayor Nutter to take a pay freeze. Ten exempt airport staff took a 5 percent pay cut last year, Gale said.

"We are in discussions with the airlines to try to reduce the budget," Gale said. "We understand it is a very difficult time for them."

About 32 percent to 35 percent of revenues not derived from airlines comes from parking. Gross receipts from airport parking garages and lots were down 12 percent in May compared with a year ago. The number of cars parked at the airport in May was down almost 15 percent, Gale said.

Revenue generated from airport parking January through May was down 9.9 percent, the Philadelphia Parking Authority said.

Sales in airport shops and restaurants plummeted 5 percent in that period, with news-gifts sales (including sundries and magazines) down 11 percent, said Deputy Philadelphia Aviation Director James Tyrrell.

"That's a pretty big number," he said.

Airlines operating out of Philadelphia International are looking for relief to make sure the airport operating budget does not go up.

"We have issues we have to deal with; our costs are rising," Gale said. "We have additional facility to take care of. We have additional debt service that needs to be paid from projects that are coming on."

Airport officials hope to wrap up discussions with airlines on the fiscal 2010 budget in the next two weeks.

"If we can keep the rates and charges to airlines as flat as possible, that's a pretty admirable goal," Gale said.

Meanwhile, the economy and an accompanying fall-off in travel is prompting airlines to make more seat-capacity cuts for the traditionally slower period between Labor Day and Thanksgiving.

US Airways Group plans to drop its daily flight from Philadelphia to London's Gatwick airport Sept. 7. Philadelphia's largest airline will still operate one daily flight to Heathrow airport. British Airways will continue two daily flights to London Heathrow.

US Airways announced earlier that it will curtail year-round service to Milan, Brussels, and Zurich, and provide seasonal service only from May to October.

Southwest Airlines Co. will discontinue nonstop service from Philadelphia to Columbus, Ohio, and San Antonio, Texas, on Nov. 1.

Southwest, the second busiest carrier here, will schedule one fewer flight a day from Philadelphia to Jacksonville and Orlando, Fla., Manchester, N.H., Phoenix, and Raleigh-Durham, N.C., while adding a daily flight to Denver and West Palm Beach, Fla.

Delta Air Lines will end all flights to Boston from here on Aug. 1.

Air France will cease flying to Paris from Philadelphia on Oct. 4, although the route will be picked up by Delta.

American Airlines will trim one daily flight from Philadelphia to Chicago, going from six round trips a day to five starting Nov. 19.

"We currently have 20 round trips a day from Philadelphia serving Dallas-Fort Worth, Miami, Chicago, San Juan, and St. Louis," said American spokesman Tim Smith. "None of those cities will lose service."