Stewart looks to the sky again
Airport recovering some services and is hopeful for summer travelers
The past year was not a good time to be in the airline business. Although vaccination rates today are rising and travelers are returning to the skies, New York Stewart International Airport has a long way to go to recovery after the pandemic.
“No small airport or community has escaped the impacts of COVID -19,” said Port Authority of New York and New Jersey Aviation Director Huntley A. Lawrence. “Many airports have lost all of their air service. It’s been a real challenge as the air
line industry has seen significant losses in their traffic in the past year.”
Stewart Airport saw a 90 percent reduction in total passengers and a 64 percent drop in departures in December 2020 compared to the same period the previous year, according to the Port Authority’s traffic report. Airlines for America, which advocates on behalf of airlines, reported that U.S. airline operating revenues fell 62 percent from the first quarter 2019 to the first quarter 2021. At the lowest point, passenger volumes were down 96 percent, the A4A said.
The airfield at Stewart dates to 1930 when aviation buff Archie Stewart donated 220 acres of land to the city of Newburgh. Used for cadet flight training, the airfield became Stewart Air Force Base in 1948 before expanding steadily as a commercial airport over the years. By 2017, Stewart welcomed its first trans-atlantic arrival, a Norwegian Air flight from Edinburgh, Scotland.
At its peak in 2018, Stewart was home to five passenger airlines and contributed $426 million in economic activity to the region. That translated to 2,390 total jobs and $142 million in annual wages.
But the airport has lost three of those five carriers in two years, and one of the two remaining airlines — American Airlines — suspended service for a period during the pandemic. Norwegian Airlines, which offered affordable nonstop flights to Ireland from Stewart, initially suspended flights in March 2019 because the Boeing 737 MAX planes it used were grounded globally due to two deadly crashes. The carrier ultimately said that the routes were no longer
commercially viable. (Senate Majority Leader Charles Schumer’s plea to Aer Lingus to restore international flights to the airport has so far gone unheeded.)
Jet Blue and Delta also ended flights from Stewart last year amid the pandemic and neither has
definite plans to resume service.
American offers one flight daily to Philadelphia while Allegiant offers flights only during highdemand times like holidays and the summer, with service to Orlando and St. Petersburg in Fla., and Myrtle Beach, S.C.
The airline will resume service to Punta Gorda, Fla., in June. It also recently added service to Savannah, Ga., beginning May 26 in time for Memorial Day weekend.
Federal aid has helped keep many in the airline industry employed despite a drop in passenger travel, which is still down 36 percent compared to levels before the pandemic. In March 2020, passenger airlines received $50 billion in pandemic relief, split evenly between loans and payroll grants. President Biden’s relief bill this year provided an additional $14 billion to airlines and $9 billion for airports. Of this latest round of aid, Stewart Airport received
$2.3 million for operations, personnel, cleaning, sanitizing and debt service payments, among other things.
The fact that airline employees are being called back is a good sign of the overall economy, but in the case of Stewart, there may be more reasons to be optimistic. Airline industry analyst Robert W. Mann said that Stewart has gotten some of its initially canceled service back, and this trend may continue as summer leisure traffic recovers. Mann also likened the potential of the Hudson Valley to California’s wine country in terms of its ability to draw
non-local tourists to the area by plane.
“There’s lots of draw in the Hudson Valley. But it will take a fair amount of effort, both by the state and the Port Authority,” Mann said. “It’s an unexploited situation and these things bear fruit over time.”
But the biggest determinant of Stewart’s future success hinges on when New Yorkers go back into the office — and fly for work again.
“A critical factor will be the return of business travel,” Mann said. “So many secondary and tertiary airports only had services because of the business traveler.”
This spring, the Port Authority announced several initiatives intended to re-energize the airport, including an incentive program to attract
carriers, a new marketing campaign and a state-ofthe art customs facility, which added 20,000 square feet to the existing terminal and also allows additional screening.
To attract more airlines, Stewart is offering airport fee waivers and marketing support for 24 months for any carrier that begins nonstop service to any destination not currently served from Stewart.
Lawrence would be happy with any existing airline that adds new
routes to the airport, but “what I would love to see,” he says, “is one of these new start-up airlines like Breeze or others make Stewart airport a focus city.”
The new marketing campaign, focused on both the airline industry as well as consumers through targeted digital advertising and social media, also includes a new logo featuring a modern-looking apple, which was selected to convey the airport’s proximity to apple country and New York City. They’re also working with local tourism partners and area attractions to raise awareness of Stewart as a viable travel option.
Hudson Valley Tourism President Amanda Dana said growth at Stewart has to come from attracting more customers in the region who are looking to travel to the destinations that Stewart serves, as well as attracting more
“A critical factor will be the return of business travel. So many secondary and tertiary airports only had services because of the business traveler.” — Robert W. Mann, airline industry analyst
tourists to the Hudson Valley.
“People already view New York City as a destination, so one way to do this is to highlight how close and easy it is to travel an hour north of the ‘Big Apple’ and get an incredible experience,” she said.
Dana also recommends marketing the region to other parts of the country, especially a city in the Southeast that Stewart already services, particularly during prime travel times like July through October.
“This (would) align very nicely with the Hudson Valley vacation season where we experience an uptick in visitors.”
Interest in air travel in recent weeks has picked up, with the number of daily passengers surpassing 1 million for a 706 percent increase in air travel compared to this
time last year.
“People are ready to go out and enjoy their time with their families and they are ready to go on vacations,” Lawrence said.
Increased demand is one reason to be bullish on Stewart Airport, but another post-pandemic consideration is the fact many people have decided to leave congested areas like New York City and move to the Hudson Valley — and more residents could mean more travelers at Stewart.
“We know there was an influx of new residents into the county, like the increase post-9/11,” said Orange County Executive Steven M. Neuhaus, “However, it will be awhile before we’ll be able to quantify this growth.”
Neuhaus also said Stewart is vital for another reason. Cargo makes up a significant percentage of business at the airport with companies like Fedex, DHL and UPS shipping oversized freight, express packages and
livestock on regularly scheduled flights. Domestic freight was up nearly 17 percent in December
2020 from the year prior.
Stewart’s optimal location — at the intersection of the state Thruway and Interstate 84 — makes it very attractive for cargo companies and the business could grow, Mann said. Freight going to Rockland County, Connecticut, or the Hudson Valley is better off arriving at Stewart rather than JFK, the region’s major cargo hub, because it’s much less congested in terms of air traffic and surface roads, he said.
The opening of Legoland, the state’s first major amusement park and adjacent hotel, located in Orange County, is also expected to bring in new travelers.
“Stewart Airport can and will be a success,” Neuhaus said. “With attractions in Orange County such as Legoland, Stewart can become a regional destination airport.”