US Airways to cut more Las Vegas flights

Workers are told hub operation for connections to end

Steve Marcus

A US Airways passenger jet takes off from McCarran International Airport in February. The carrier operates about 100 round trips daily to and from Las Vegas.

By Richard N. Velotta (contact)

Published Wednesday, April 30, 2008 | 2 a.m.

Updated Wednesday, April 30, 2008 | 11:46 a.m.

US Airways Flight Cuts

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On Aug. 19, 2008, US Airways will discontinue its Las Vegas hub operation, US Airways employees say they have been told. US Airways, the second-largest carrier for McCarran Airport, has begun to cut its flights this year, when compared to last year's numbers -- it's down from 131 daily round trips last year to 100 this year. The possibility of a merger between United Airlines and US Airways could potentially be another negative factor for Las Vegas' US Airways traffic. In the past month, tickets on US Airways flights have gone up $25 to $50.

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US Airways, the second-busiest operator at McCarran International Airport, has notified its workers that it will discontinue its hub operation in Las Vegas and curtail the number of flights here.

US Airways currently operates about 100 round trips daily to McCarran. The airline, based in Tempe, Ariz., had 131 daily round trips to and from Las Vegas a year ago but began scaling back its “night hub” operations to cut costs in the past few months.

The airline’s cuts signal further declines in the tourism industry that drives the Las Vegas economy. They also highlight the struggle airlines face as they are squeezed by demands for low fares and the soaring cost of jet fuel. The price of a barrel of oil hit a record $120 this week.

A spokesman for US Airways would not confirm that a decision has been made on cutbacks, saying only that the company is evaluating options to reduce the number of flights to and from Las Vegas.

But US Airways employees at McCarran said they were told the airline plans to discontinue its hub operation in Las Vegas on Aug. 19.

US Airways spokesman Morgan Durrant said that even if the airline trims its schedule, it would avoid furloughs or layoffs of its more than 1,000 employees in Las Vegas.

McCarran officials had no comment on the report. A decrease in flights could result in a decline in revenue for McCarran, because landing fees are part of what the airport collects from all airlines.

US Airways was short on details of prospective cuts at McCarran because the airline has been in the news all week for another reason: It’s a potential merger partner with Chicago-based United Airlines.

On Sunday, another prospective United merger partner, Houston-based Continental Airlines, formally announced its decision to operate independently of United. That opened the door for talks between United and US Airways. By midweek, both companies said merger talks were in “advanced stages” with an announcement possible within two weeks.

Durrant said the airline could not speculate on merger prospects and wouldn’t say whether flight cutbacks at McCarran or any other airport were in any way related to merger talks.

United is the third-busiest carrier at McCarran with an average of 39 flights a day to and from Las Vegas.

Aviation analysts say US Airways’ possible cuts at McCarran shouldn’t have an effect on Las Vegas, especially if it’s the airline’s hub operation that is lost. In the past, when airlines cut capacity, low-cost carriers have picked up the slack. But they could affect Las Vegas because in an era of $120-a-barrel oil, even low-cost operators may not be able to deliver that level of capacity.

In an airline hub-and-spoke system, flights arrive and depart within a two- to three-hour window so passengers can change planes to other destinations. US Airways has maintained two “banks” of flights at McCarran after 9 p.m. The first is between 9 and 11 p.m., when the airline operates an average of seven flights. The second is from 11 p.m. to midnight, involving 23 flights.

If the entire night hub operation is discontinued, eliminating both banks of flights, Las Vegas could lose 30 flights, or about one-third of its operation.

Passengers would feel the pinch in a loss of convenience. Las Vegas has been a popular night hub for US Airways and other airlines because passengers not only transfer to other flights, but can arrive in the late hours and still have ground transportation amenities because of the city’s 24-hour lifestyle. The night schedule is also helpful to local businesspeople who want to fly to the East Coast and arrive at the start of the day.

But within the past several months, US Airways has determined that its combination of low fares and skyrocketing fuel costs makes it more economical for the company to park its planes than to run them to Las Vegas at night.

Since April 2007, US Airways has cut the number of flights arriving by 23 percent — which corresponds directly with the airline’s passenger performance for March, according to statistics released by McCarran this week.

US Airways’ passenger counts were down 24 percent in March to 684,200. That and United’s 12 percent decline to 266,220 passengers over the same period led to an overall decline of nearly 2 percent in arriving and departing passengers at the airport.

Overall, 4.12 million passengers flew in and out of McCarran in March. Although that represented a decline in traffic, it was being compared with a high number: 4.19 million passengers into and out of McCarran in March 2007. At the time, that was a single-month record. It was surpassed in August.

Southwest Airlines, the busiest carrier at McCarran, increased traffic by 4.3 percent over March 2007 with 1.43 million passengers.

No. 4 Delta Air Lines and No. 5 American Airlines had months comparable to the previous year’s.

(Editor's note: This story was updated to include that Durrant said the airline could not speculate on merger prospects.)

Discussion: 17 comments so far…

By jenna

4/30/08 at 2:55 a.m.

Suggest removal

Wow, this is seriously messed up. Good story, bad news for Las Vegas.
By mikeg

4/30/08 at 8:55 a.m.

Suggest removal

I blame it on 6:5 blackjack. And jacked up hotel rates. The expense of this city is driving small town travelers and conventioneers away.
By redvempor

4/30/08 at 9:57 a.m.

Suggest removal

We were in Las Vegas, Nevada April 26th, 2008 to get married.
We enjoyed the city and sincerly hope that the airline service reduction will not affect the rumored second airport construction.
~ Mr. Travis Jones and wife Lori.
By united777

4/30/08 at 11:53 a.m.

Suggest removal

This city never ceases to amaze me. As a pilot I know a little of what I am talking about. 1/3 of the passengers to Vegas are on freebies, and the rest demand fares dating back to 1998, and the capacity of either a DC-10 or 747. And don't forget hourly service as well !!!! Well here is the reality folks...as oil marches on to $120.00 per barrel, and it now costs roughly $250,000. to fuel either a 737 or an A320, we are cutting back on non profitable destinations and routes. We still make more money on the coast to coast run than stopping here first, and then moving on. Better let you casino bosses know that as the economy worsens, airlines will not bleed cash just so they can make their 7 figure incomes.
By Rverp1

4/30/08 at 5:54 p.m.

Suggest removal

united777 with all due respect you do not know what you are talking about...As a Las Vegas resident I pay some of the highest prices in the country just to fly to Chicago (my original home)...and quite frankly fares to Las Vegas are more expensive than most routes in this country...This whole United/USAIRWAYS merger is a menopolistic purchase...A way to cut out competition...We are not looking for freebies and most people that come to Vegas are honest hard working people looking to blow off steam...I am sure you are not even privy to price information but even if you were how does it matter...This is jobs and commerce...Without those flights Las Vegas will suffer, and in my opinion Vegas itself needs to try to stop the process with cash or something to keep the system running....
By gijoe

4/30/08 at 7:56 p.m.

Comment removed by staff.
By mikeg

4/30/08 at 8:44 p.m.

Comment removed by staff.
By sailorsam160

5/1/08 at 1:42 a.m.

Suggest removal

it's my opinion that USAIR is the best air carrier from DTW (Detroit) to LAS (Las Vegas) and I would hate to see it go away.
plus it would hinder me from going to Vegas on a regular basis.

S.G.O.
By united777

5/1/08 at 9:29 a.m.

Suggest removal

Rverp1 must work for the casino industry. Too bad, that this city relies only on one industry for its primary employer and income. As for fares, I do have access to them, and adjusted for inflation a fare from here to chicago should be 40% higher than it is. And of course you will want full gourmet meal service, back and neck rub etc. We have already downsized this city to the A320, and if the economy continues to dry up the next move will be the A319 and fewer of them. We are not going to keep bleeding cash just so Las Vegas can keep things status quo. And as for freebies, during the first quarter of this year, one third of the seats on flights to and from las vegas were on mileage account freebies. If hourly and widebody service is that important to you, have your casino or employer charter you a flight..Use some of your comps from your favorite gambling hall for them....
By mikeg

5/1/08 at 2:15 p.m.

Suggest removal

Ha ha someone said US Airways is the best carrier. Best at what? Losing your luggage, making you sit on the runway for hours, or never making a connection on time?
By aliceibew

5/2/08 at 4:12 a.m.

Suggest removal

mikeg your an ass...i fly with them all the time ..never lost anything always on time..blame the us goverment ...and bush,,,they are slowing up the whole system with this 911 crap ...
By nosauten

5/2/08 at 2:15 p.m.

Suggest removal

I used to fly America West before they merged with US Airways. I'm not looking forward to US merging with United--that would be bad for competition.

The problem I think going on with Las Vegas is tha the newer casinos do not represent the true spirit of Las Vegas. I miss the old Las Legas which is dying. I usually hang out in the North strip these days or Freemont street. Better prices there, friendler service, friendlier people.
By ninemile

5/3/08 at 6:38 a.m.

Suggest removal

First off united777 the airlines offer free rides’ for flying X amounts of flights or miles so it just happens that Las Vegas is a prime destination for a little vacation. I assume that there are a lot of free rides to Hawaii and Florida too. However, everyone is missing the point. Fuel is going up, and it’s not going to come back down. This affects everything; all the essentials of living are going up. Disposable income is gone! It is now spent to get you to work, feed your family, heat or cool your home and hope like hell that your job isn’t paid for by disposable income. Airline tickets have to go up to pay for the fuel increases the problem is that we won’t be able to afford to fly, were not going to have the money to do it. Las Vegas is a luxury, and luxury is one of the first things to go when you’re worried about surviving. Bad times are ahead, I wish you all well.
By united777

5/3/08 at 1:26 p.m.

Suggest removal

Flying is not a God given right, and it is not gauranteed in the constitution. As the cost increases, some of you may have to consider Amtrak or Greyhound. Or gas up your Hummer or Lincoln Navigator and take the drive. Everything else has gone up gradually, but everyone whines when airlines raise fares or cut the number of flights. Las Vegas is a luxury not a necessity for most people, and frills get cut first in tough times. Instead of whining about airfares and cuts, approach the idiots running this county about lowering the price of leasing office space so that other industries might actually consider moving here, and no one would have to rely on the whims and well being of the gambling industry. And get them to offer the same generous tax credits the casinos get. But that seems to be to complex of a thought for most of the residents of this county. You would rather whine about people not coming to this town to have their wallets emptied by your employers.........
By markus

5/4/08 at 4:34 p.m.

Suggest removal

i live in ohio and used america west faithfully.since the merger i fly northwest.i can catch either airline from columbus or indianapolis.i used to go to vegas twice a year but agree that the hotels are jacking up rates almost as fast as oil.something has to give sooner or later,but until then i'll wait it out and go to the riverboats.

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