GUC air program a success

Winter air stats come in strong while summer ahead of last year

By Mark Reaman

Air travel into Gunnison is getting easier with more flights and right now air fare prices are pretty competitive. That is making for a successful regional air program on the upswing concluded Gunnison Valley Rural Transportation Authority air consultant Bill Tomcich at the May 9 board meeting.

“It was a great winter with an overall 14.5% increase in seats while passenger numbers were up 16%,” he said. “It is rare to see passenger demand keep up with capacity growth. To actually exceed it, is extremely rare. And we have higher overall load factors as well.”

“We are pleased with the winter results and summer air is starting out strong,” concurred Tourism and Prosperity Partnership (TAPP) executive director John Norton. “I think you will be wrestling with the opportunity for new service when you discuss airline service in August. United wants to expand the Chicago route and other opportunities could be possible. If you want support in marketing from Vail Resorts, the earlier you make a decision and get the information to Vail, the better.”

Tomcich said the two routes from Texas, United’s Houston flight and American’s Dallas flight, both did well with close to 75% load factors (the number of filled seats) on each route. “United flights from Denver saw the largest year-over-year growth with a 69% load factor, which is extraordinary in light of a 50%+ increase in capacity,” Tomcich said. “And the Chicago experiment that ran from mid-February to the end of March ran at a 65% load factor which is not at all bad for a new route. It got United’s attention as they plan to expand that route for next winter to start December 20, although details of the support package haven’t yet been worked out.”

Given the increase in numbers, Tomcich reported that the Minimum Revenue Guarantees (MRG) paid to airlines from the RTA to fly into Gunnison declined from last year. He expects a total shortfall to United for the Houston and Chicago flights combined of about $405,000 compared to more than $520,000 a year ago for Houston only. That would be about $176,000 less in total expenditures than what the RTA had budgeted for.

Tomcich said the summer schedule would be “very robust.” The three flights a day from Denver will commence May 22 and go deep into the fall. “United is extremely pleased with how Gunnison is performing, and I’ve been told it is one of the more profitable routes for them originating from Denver. 

“Summer bookings are looking very strong, already up 33% from this time last year,” he continued. “Part of the reason is that fares are very reasonable right now. The last couple years, United held back inventory to allow for close-in bookings at higher fare levels. But it was reported in United’s recent earnings call that they are releasing more discounted summer inventory early this year. That means now is a good time to book air from Gunnison if you are thinking about travel this summer.”