American to cut service to Stillwater
Airline plans to drop 15 cities after CARES Act funds expire
American Airlines announced it will cut service to 15 cities in October, including one stop in Oklahoma.
The airline said Thursday flights to and from Stillwater will end Oct. 7 once federal relief funds end. The Coronavirus Aid, Relief and
Economic Security (CARES) Act included air service requirements on carriers to maintain routes.
American said the changes are in place only for the October schedule period, which runs through Nov. 3. The suspension may be temporary.
"The airline will continue to re-assess plans for these and other markets as an extension of the Payroll Support Program remains under deliberation.
The full, updated October schedule will be released Aug. 29, and American anticipates releasing its updated November schedule by late-September," the company said in a news release.
Stillwater Regional Airport Director Paul Priegel said federal financial assistance is needed to maintain local commercial air service, and Stillwater city officials are in contact with Oklahoma's congressional delegation, urging them to support the commercial aviation industry through legislation.
"We know that our customers, which include Oklahoma State University's students, alumni and faculty as well as area business travelers, have become reliant on the services American Airlines provides," Priegel said. "We are thankful to have such a supportive local community and a fruitful partnership with Oklahoma State University, and we are optimistic and ready to serve when the time is right."
Since the introduction of commercial air service in 2016, Stillwater's airport has seen continuous growth, Priegel added. In 2019, the airport served a record-breaking number of over 58,000 passengers and saw an 8% increase in passengers. Due to demand, the airport began several major airport construction projects, including a three- phase apron reconstruction project and a recently completed parallel taxiway system.
Oklahoma City- based airline industry analyst Levi Anstine said American Airlines' decision to leave Stillwater is unfortunate, but not unexpected.
"During economic downturns, small cities such as Stillwater are usually the first to be removed from an airline's network. Currently, airline passenger counts are hovering 25% to 30% of the previous year's levels and fares are generally much cheaper. This makes for a difficult revenue environment causing airlines to remove underperforming assets," Anstine said.
The most optimistic industry forecasts do not expect full passenger recovery until 2024 or beyond, he added.
"We should expect to see airlines continue to remove routes and cities from their networks. It would not surprise me to see further reductions hitting local Oklahoma airports," said Anstine.