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Austin-Bergstrom International Airport

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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439 total articles

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26 total articles

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Alaska Air faces competitive capacity pressure in early 2016 after making its own ASM push in 2015

11-Nov-2015 8:54 PM

Alaska Air Group is planning capacity expansion of 8% in 2016 after growing nearly 11% in 2015, including a 12.5% expansion in 4Q2015. Much of the push during the final three months of 2015 is additions to existing markets where Alaska concludes demand remains robust.

Although Alaska’s YE2015 capacity growth may be outsized compared with other US airlines, its ASM expansion between 2009 and 2014 was in the mid to high single digits, and its 2016 projections are in line with those trends. It also remained profitable during that time period, which featured soaring fuel prices and a global economic downturn.

During early 2016 Alaska is facing some headwinds from capacity growth by its competitors, but concludes much of that growth is the annualisation of new route launches that occurred in 2H2015. With the competitive onslaught Alaska has endured in Seattle during the last couple of years, it is clear the airline can handle the industry capacity growth in its markets. Its own network development during 2015 reflects a strengthening of its presence in Seattle in both small and large markets to leverage both connecting and local traffic.

Southwest Airlines layers back short haul flying as it contemplates its long term network strategy

10-Nov-2015 8:02 PM

Southwest Airlines has drawn much attention during 2015 for the disruption that its massive expansion from Dallas Love Field has created in the overall Dallas market. The capacity additions and overall lower fares have resulted in Dallas emerging as the largest US market, with deterioration of pricing traction being a major feature.

The reality is that Southwest is capping off a few years of changes, including the full integration of AirTran, a de-hubbing of Atlanta, and the launch of Southwest-branded international flights from a new terminal at Houston Hobby.

As Southwest’s domestic network continues to reach higher levels of penetration, questions are arising over the airline’s network strategy going forward. Recently it has hinted the timing could be favourable to shore up short haul markets, after focussing on longer haul flying for the last decade and a half. Some of its planned new routes for 2016 reflect Southwest’s willingness to test the waters on short haul flights. 

JetBlue and Virgin America create interesting dynamics for the hybrid business model in the US

4-Nov-2015 11:34 PM

Although JetBlue and Virgin America both recorded slides in their passenger unit revenue during 3Q2015, the trend of each airline outperforming their US peers continued. They remain shielded from major factors driving down the performance of American, Delta and United – foreign exchange pressure and higher exposure to weaker global economies.

Virgin America, which has been affected by the pricing pressure in Dallas and competitive challenges in the New York transcontinental market, believes that pricing could start to firm up in those markets in 2016 as higher industry capacity growth in those regions begins to moderate. JetBlue holds a similarly positive outlook, highlighting a rebound in demand after experiencing some softness in Sep-2015.

Both airlines are forecasting higher capacity growth in 2016 than the large global US network airlines even as some yield softness has crept into more domestic markets. For now JetBlue and Virgin America remain comfortable with their growth forecasts, and believe they can maintain their advantage in unit revenue performance.

Allegiant Air’s model not easily duplicated. Does that guarantee a (bigger) niche in the US market?

17-Aug-2015 11:07 AM

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 maintains an optimistic outlook despite competitive capacity pressure

10-Aug-2015 11:52 PM

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.

Ultra Low-cost airline expansion is in full flow in Atlanta. Who will be the winners and losers?

11-Jul-2015 7:18 PM

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.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.

This content is exclusively for CAPA Membership Subscribers

CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.