Orlando Sanford International Airport
- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- IATA Code
- ICAO Code
- Corporate Address
- Sanford Airport Authority
1200 Red Cleveland Boulevard
Sanford, Florida 32773
- United States of America
- Domestic | International
- Airport Type
- Other airports serving Orlando
- Orlando Executive Airport
Orlando International Airport
- 1830m x 46m
- Airlines currently operating to this airport with scheduled services
- Allegiant Air
Branson Air Express
National Airlines (US)
TUI Airlines Netherlands
Orlando Sanford International Airport (SFB) is located within the boundaries of the City of Sanford, in the northwestern section of Seminole County, Florida, 18 miles northeast of Orlando. The Sanford Airport Authority is responsible for the operation, maintenance and development of the airport and its facilities. SFB benefits from a unique blend of local government and private investment that makes for a very customer focused airport. The Airport is operated through a public/private partnership between the Sanford Airport Authority and Airports Worldwide. Airports Worldwide has been contracted by the Sanford Airport Authority to manage both the international and domestic terminals, develop additional air service, and provide ground handling and cargo services. This public/private partnership has created service benefits for SFB airline customers and passengers.
Location of Orlando Sanford International Airport, United States of America
Ground Handlers and Cargo Handlers servicing Orlando Sanford International Airport
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Fuel & Oil Suppliers servicing Orlando Sanford International Airport
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146 total articles
20 total articles
Although Allegiant Air has tweaked its unique business model during the last couple of years to capitalise on vacancies in medium-sized markets, opportunities remain for the airline in the more typical small markets that it links to its large leisure destinations. Its growth strategy is to operate a mix of those smaller routes and continue to add medium-sized markets when the opportunity arises.
The company may find increasing competition from US ULCCs that contemplate entering larger markets, but Allegiant believes that it can continue to grow in markets that Spirit and Frontier do not find attractive, and also that it has other structural advantages over those airlines.
Allegiant has not escaped the unit revenue pressure plaguing US airlines, but similarly to those airlines the company believes that it can achieve improvement in that metric during 2016. As it has previously noted, some of the revenue weakness is driven by Allegiant’s own growth which, the company stresses, is earnings accretive.
Some cracks are beginning to emerge in the immunity from the soft pricing environment that Allegiant Air has enjoyed in the US market. The company is feeling pressure from increased ULCC competition and large network airline discounting on connecting traffic in some of its markets. That added pressure, along with Allegiant’s decision to boost off peak flying in response to lower oil prices, is driving down total unit revenues for the company in 1Q2016.
In mid-2015 Allegiant began making a push into off-peak flying, reasoning that the added capacity could lower margins and unit revenues, but could in fact lift overall profits. The company’s top-line profitability did jump 154%; Allegiant has also concluded that the added flights, while still profitable, underperformed relative to the company’s expectations. However, Allegiant expects to sustain its increases in off peak flying as long as fuel remains at current levels.
Similarly to the situation at other airlines, falling unit revenues and increasing capacity seem to be pressuring Allegiant’s stock valuation, as concern grows among investors over its ability to withstand the pricing pressure in the US market place. But despite the pressure on Allegiant’s valuation, it will, together with most other US airlines continue to grow profits and returns as fuel prices lift performance. The combination of these measures is driving a different type of behaviour in the market place.
Allegiant Air works to take full advantage of lower fuel prices with a major push in off-peak flying
Allegiant Air’s business strategy has always been unique in the US market place – and even globally. Although the company has slightly modified its approach of linking small markets with large leisure destinations during the past couple of years, Allegiant’s business model has emerged as one that seems to withstand cyclicality and other challenges that airlines face.
During 2015 Allegiant has not escaped the unit revenue degradation that has swept through most of the US industry. But its decline stems more from internal factors than Allegiant’s exposure to the US domestic regions enduring the fiercest pricing pressure. Allegiant has opted to tilt its business in a direction to maximise the benefits of lower fuel costs, which show no signs of disappearing in the short to medium term.
Allegiant is steering its business toward off-peak flying, which is driving down unit revenues and margins, but lifting profits. It is a similar move adopted by larger airlines, but Allegiant’s niche business model creates more opportunity for the company to push the envelope on marginal flying.
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.
Raleigh-Durham International Airport (RDU) lost its hub status before the onset of the economic downturn and consolidation among the large US major airlines. But during the last few years its traffic levels have remained stable, driven in part by the metro area hosting numerous educational and research facilities that help to sustain a certain level of origin and destination traffic.
The airport is adding new airlines in 2015 including Allegiant and Alaska Airlines, expanding Raleigh-Durham’s (RDU) offering to the US West Coast and Florida. United is also resuming service to Denver, and Southwest is adding service to Dallas Love Field. All of this bodes well for Raleigh-Durham to maintain or grow its current passenger levels.
Undoubtedly the ultimate prize for Raleigh-Durham is additional long-haul flights beyond its current service to London Heathrow. But similar to other US non-hub airports, Raleigh-Durham understands the competition to gain additional service is fierce, and securing new long-haul routes is a lengthy and challenging process.
Austin-Bergstrom Airport capped off 2014 by recording 7% passenger growth after reaching a milestone in Mar-2014 with the debut of its first trans-Atlantic service by British Airways on flights to London Heathrow.
Although it is not a hub for any major airline, Austin does have numerous favourable elements that make it ripe for continued growth, including a strong economy, an unemployment rate lower than the US national average and a relatively young population.
Obviously the airport aims to expand its long-haul offerings; but that could prove difficult in the short term given weak macroeconomic conditions in some trans-Atlantic regions. But during 2015 Austin is regaining transborder flights from Air Canada with flights to Toronto, while US domestic airlines also plan some expansion at the airport.