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Pittsburgh International Airport

Pittsburgh International Airport is the international gateway to Pittsburgh. Hosting domestic, regional and limited international passenger and cargo services for over 20 airlines, the largest operators at the airport include US Airways and Southwest.

Location of Pittsburgh International Airport, United States of America

Ground Handlers and Cargo Handlers servicing Pittsburgh International Airport

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411 total articles

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31 total articles

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Niche airline Allegiant's unit cost pressures soften as it makes a push into medium sized markets

4-Feb-2015 9:51 PM

US niche airline and travel company Allegiant capped off CY2014 by taking a USD43 million write down on its fleet of six Boeing 757s, which created additional noise in its results that were also affected by training expense that created cost headwinds throughout most of CY2014.

Despite those challenges, Allegiant recorded strong top-line revenue growth in 4Q2014 and CY2014 as unit costs were pressured by training expense during the year. But at the same time the company is keeping an eye toward shareholder returns by deciding to issue a recurring dividend for each quarter in CY2015, and still retains roughly USD86 million in share repurchase authority.

After facing continuing cost headwinds in 1Q2015, Allegiant’s cost pressure should ease throughout the remainder of the year as it seems to be focussed on domestic expansion for the foreseeable future.

Los Angeles Airport at the heart of a fierce battle between American Airlines and Delta Air Lines

27-Jan-2015 4:36 PM

Los Angeles International Airport has emerged as a battle ground for American Airlines and Delta Air Lines during the last couple of years as the market, while hugely fragmented, retains a high level of importance within the networks of most US major airlines.

But the success of each airline’s recent expansion in Los Angeles is tough to predict. Both American and Delta unsurprisingly declare that their operations in Los Angeles are successful; but the longevity of that success is difficult to predict given the tough competitive dynamics in the market.

The investments each airline is making in Los Angeles obviously carry some risk. But the scenario for American is a bit different given it does not have a true west coast hub for long-haul traffic, and the operating constraints in Los Angeles threaten to constrain its optimal growth path.  

Pittsburgh International Airport works to reduce costs to attract airlines post-consolidation

11-Jan-2015 10:24 PM

Pittsburgh International Airport was one the first major hubs to face the reality of tough economic times as US Airways in the middle of the last decade opted to pull down a significant amount of service at its one time hub. Further cuts occurred after US Airways merged with America West that resulted in Pittsburgh essentially becoming a spoke for hubs of the US major airlines.

The result was Pittsburgh being left with a fairly new terminal designed for connecting passengers that exceeded demand for its new status as an origin and destination airport.

But like other airports, Pittsburgh has learned the art of reinvention, and has kept passenger throughput relatively stable during the last few years with new service from low cost airlines and some capacity additions by legacy airlines. Now the airport has embarked on a more unconventional strategy to slash debt and offer airlines a competitive cost base.

Allegiant Air works to exploit opportunities created by consolidation in medium sized markets

1-Jan-2015 8:56 PM

Allegiant Air is making some subtle network shifts as consolidation in the US airline industry has made operating from mid-size hubs more viable for the airline. During 2014 it has rapidly built up Cincinnati, as Delta has pulled down service at its smaller hub to maximise its network utility.

During 2015 Allegiant is introducing flights from other mid-size markets as it concludes those larger regions may not require as much deep discounting as some smaller markets within its network. The airline is also using its Airbus narrowbodies to increase its network breadth by placing those jets in markets unviable for its MD-80s, which still comprise the majority of its fleet.

Allegiant’s moves show that even as the US market may appear to have reached a steady state of maturity, market dynamics within that framework are changing, albeit at less dramatic levels.

ULCC Allegiant Air battles rising unit costs CY2014 as it works to mitigate training expense

12-Nov-2014 9:18 PM

One of the lowest cost airlines in North America – Allegiant Air – could see a double digit rise in unit cost growth in CY2014 stemming from training expense and an aircraft acquisition that the company believes will ultimately generate high returns, but is creating short term pressure since the jets are not producing available seat miles.

Allegiant anticipates the challenges it has encountered in pilot training as only temporary and should be resolved by mid-2015. The easing of training expense alongside operating more unit cost friendly A320s should create a more favourable unit cost scenario in CY2015.

The company is also staying the course on its network strategy – assigning less priority to launching international service to Mexico, refining its goals for Hawaii and touting opportunities in the US domestic market ushered in by consolidation among the country’s largest airlines.

Canadian airlines remain bullish that their domestic capacity growth is keeping pace with demand

7-Oct-2014 8:44 PM

Canada’s two largest airlines believe that capacity growth in the country’s domestic market is in line with demand even if the expansion is occurring at a much more rapid pace than the country’s GDP growth.

Both Air Canada and WestJet are solidly expanding their domestic supply during CY2014 at rates higher than their US counterparts. But the airlines conclude the dynamics of the Canadian market place are different from the US, where a once fragmented industry has rationalised due to consolidation.

Part of each airline’s rationale for expanding capacity is an ability to stimulate traffic through lower fares – a strategy WestJet has adopted since its inception. But with its decreasing costs allowing it to target a higher volume of leisure customers, Air Canada also believes it is stimulating some traffic it was previously unable to access.

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