NWA AIRPORT finance panel told airport on alert, making preparations.

NW facility says unknowns loom

HIGHFILL — Members of the Northwest Arkansas National Airport Authority’s finance committee heard Wednesday that the airport is on alert and preparing for the eventual effects of the coronavirus.

Staff members told the group that the coronavirus presents a set of unknowns that likely will keep them guessing in the coming months.

“There’s no telling how this will all shake out,” Kelly Johnson, head of operations at the airport, told the committee.

January boardings at the airport stood at 67,306, up nearly 19% from the same month a year ago while February stood at 63,973, still up, but only by 9.5%. Johnson said the Transportation Security Administration indicated head counts for March are in a “slowdown” but they aren’t indicating a major drop at this time.

Also on Wednesday, in Arkansas, the first presumptive case of the coronavirus was reported in Pine Bluff, the same day the World Health Organization declared the coronavirus outbreak is now officially a pandemic.

Earlier this week, U.S. airlines cut flights in response to fewer airline

reservations and saw more cancellations as the coronavirus spreads.

According to The Associated Press, Delta Air Lines said travel demand has fallen so much that it expects one-third of its seats to be empty in March. American Airlines said that it would reduce international flights by 10% over the summer and expects flights to drop 7.5% in April. United said that it has secured an additional $2 billion in financing to give it financial flexibility in the face of the expected slowdown in air travel.

In early March, citing falling demand, United said that it would suspend its Northwest Arkansas National-San Francisco flight starting on April 1, with the suspension expected to end Oct. 1, Johnson said.

Aaron Burkes, chief executive officer of Northwest Arkansas National, said the airport’s role as a primary business hub sets it up to face a major impact as companies slow or cease business travel because of virus fears.

“We’re bracing for some big declines,” he said.

He told the committee there were some concerns that all air travel could be stopped during the outbreak but if that happened it likely wouldn’t last long.

Northwest Arkansas National is coming off a strong financial year, reporting $21.4 million in revenue for 2019, up from $16.5 million in 2018. Boardings for the year stood at 922,533 for 2019, up 17% from 2018. Staff members also reported the airport had cash reserves of about $30 million, putting it in a good position to weather an economic slowdown related to the outbreak.

Tim O’Donnell, the airport’s chief financial officer, projected with a 10% annual slowdown the airport would face a revenue loss of about $180,000 a month, for a total decline of a $2.1 million. That figure would rise to $4.3 million or $360,000 a month with a 20% decline in traffic, while a 33% decline would mean a monthly loss of about $600,000 or $7.2 million for a full year.

Johnson said in the meantime that the airport is doing what it can and is focused on sanitizing “touch points” that include door handles and railings. The airport also is making hand sanitizer available and is sterilizing the building three times a week. She said the staff has reviewed procedures and guidelines and additional protective suits and masks are on order.

She said the airport is studying its sick-leave policy and encouraging workers to stay home if they’re feeling sick.

The airport has 55 employees.