Austin-Bergstrom International Airport
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- IATA Code
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- United States of America
- Domestic | International
- 3733m x 46m
2743m x 46m
- Airlines currently operating to this airport with scheduled services
- ABX Air
Delta Air Lines
- Airlines currently operating to this airport via codeshare
- Aer Lingus
All Nippon Airways
KLM Royal Dutch Airlines
Royal Air Maroc
South African Airways
Virgin Atlantic Airways
Austin-Bergstrom International Airport serves the city of Austin, Texas, USA. The airport ranks among the largest in Texas, with direct links to major cities across the country. Southwest Airlines is a major operator at Austin, as are the regional subsidiaries of the US majors.
Location of Austin-Bergstrom International Airport, United States of America
Ground Handlers and Cargo Handlers servicing Austin-Bergstrom International Airport
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386 total articles
23 total articles
Although Allegiant Air has encountered its share of challenges in 2015 – labour unrest and some operational issues – its business model arguably is emerging as one of the most watertight, reflected in its 1H2015 earnings growth of 76% to USD119 million and is trading at a P/E ratio of over 33.
Allegiant is facing similar unit revenue degradation that much of the US industry is battling, but for entirely different reasons than domestic competitive capacity increases. Its decreases are driven by a higher mix of off-peak flying, new route introductions and continued growth. The airline’s shift into more mid-size markets is continuing, and the airline is forecasting additional expansion into those types of markets for at least the next couple of years.
The model adopted by Allegiant for the moment seems to be one that is withstanding the changing dynamics in the US domestic market, and despite some internal challenges, the company’s business strategy generates strong sentiment from Wall Street. Allegiant’s earnings multiples are more than triple some US major airlines, and its stock price is among the highest of US publicly traded airlines.
Virgin America has maintained a reasonably solid passenger unit revenue performance in 2015 even as it is exposed to two region in the US domestic market where pricing pressure has ensued – Dallas and New York.
The airline is joining the majority of its US airline peers in forecasting a unit revenue decline in 3Q2015; but Virgin America is also expressing optimism about 4Q2015 as it starts to lap the industry capacity increases in areas where it has faced heavy competitive pressure in 2015.
During 2H2015 and into 2016 Virgin America’s capacity is ratcheting up as the airline adds a total of 10 aircraft to its fleet during that time. For now, Virgin America holds a positive view about the revenue environment in 2016, and is confident that its capacity should be favourably absorbed.
Atlanta Hartsfield Jackson international Airport has become a hotbed of ULCC activity in 2015 as both Frontier Airlines and Spirit have made a push from the airport. With their entry, roughly six of Atlanta’s top 10 markets have received an injection of ULCC competition, challenging the airport’s largest airline Delta and second largest Southwest.
Atlanta seems like a reasonable target for ULCCs given its domination by Delta, which controls the vast majority of the airport’s ASMs and seats. It is too early to make any real determination of the ULCC impact in the market, but Atlanta is an interesting testbed given that many routes that the low-cost airlines have entered were previously duopolies controlled by Delta and Southwest.
The ULCC’s competitors in Atlanta have increased seats in many of the markets where the new airlines have launched service, due in part to the summer high season. However, the large network airlines are also poised to compete feverishly, and will not relinquish any of their dominance easily.
Alaska Air Group is adding a solid mix of regional, transcontinental and international routes in 2015, which is one driver in its projected 10% capacity growth. Other elements of its ASM expansion include frequency additions in core markets and aircraft upgauge.
The company is adding eight new flights from its largest hub and headquarters in Seattle and five from its base in Los Angeles, with varying degrees of competition. Overall Alaska continues to add routes where it can leverage points of strength to broaden its network utility.
Alaska continues to battle unit revenue pressure, a trend sweeping much of the US domestic market place. But it is still delivering top line profits, recording margin expansion and expanding shareholder returns in 2015.
Spirit and Frontier add new ULCC competition in Atlanta, will Delta or Southwest feel the most heat?
Atlanta Hartsfield International airport is becoming a hotbed of ULCC activity in 2015 with both Spirit and Frontier Airlines planning ample expansion from the airport, dominated by full service global airline Delta.
It is an interesting development in the post-consolidated landscape of the US, and Atlanta in particular where Southwest is the second largest airline after acquiring and folding AirTran into its operations. The additions by Spirit and Frontier show those airlines believe that Atlanta is ripe for stimulation, even though historical low fare leader Southwest has a major presence in the market. ULCCs have now assumed that role in the US market place.
Atlanta is also perhaps a test case for the ULCC effect since unlike Cleveland, it is not a hub that has lost service. It is also one of the few markets where both Spirit and Frontier have opted to expand aggressively on some of the airport’s largest routes.
Virgin America joined most US airlines in recording solid financial results for 4Q2014 and CY2014 – marking the first time it has reported its performance as a publicly traded company after completing an initial public offering in late 2014.
The airline delivered solid top-line revenue growth in each period, but faced some cost headwinds stemming from increased salaries and higher airport costs. Compensation expenses will continue to pressure Virgin America’s unit costs for CY2015.
Virgin America is also facing some revenue challenges in the New York transcontinental market and in Dallas Love Field driven by significant increases in industry capacity. The airline believes that those two markets should return to a more normalised state at some point, but it does appear the competitive dynamics shaping those markets will remain intact at least through 1Q2015.