Delta fares not to spike

The airline industry was hit hard by the recession, including the Delta hub at the Cincinnati Northern Kentucky International Airport (CVG), which is now trying to regain consumer confidence as the fifth busiest hub in the country.

“I flew with Delta out of CVG and had an enjoyable experience because they had nice service,” said Kasy Kusanke, a second-year fashion design and product development student. “But the prices of tickets are ridiculous: they keep people who can’t afford them from seeing their family or traveling for business.”

In February, Delta reported reductions to the U.S.D.O.T. ranging between 5 and 60 percent on most CVG fares. A 20 percent reduction across the board has the potential to save local passengers more than $80 million, according to CVG.

In recent years, CVG instituted a hiring freeze and reduced late-night flights to save money and offset charges to passengers and airline partners.

Currently, airfares are lower due to decreased demand.

Delta reported that system traffic for September 2009 has decreased 5.2 percent since September 2008.

It also stated there has been a 3.3 percent decrease in domestic travel and 7.8 percent decrease in international travel due to loss of direct flights.

Currently Delta is facing a 4 percent passenger decrease in comparison to this time last year, but CVG is seeing a 30 percent increase in local passengers, said Barb Schempf, CVG government affairs manager.

“There is no indication that Delta will increase its fares at CVG,” Schempf said. “Unfortunately, we cannot support that statement with any real statistics except if you look on-line for future travel, the fares are still low and competitive with surrounding airports.”

Delta and Northwest Airlines launched a new frequent flier program for passengers on Thursday, Oct. 1. NWA’s WorldPerks program has been discontinued and is now part of Delta’s SkyMiles program.

Unused WorldPerks miles were converted to SkyMiles; and any traveler who earns travel miles will now have them awarded as SkyMiles.

Along with creating a joint flier program, the two airlines are combining their fleet – Delta recently repainted 138 of 250 NWA aircraft with Delta identification. Other companies, like Southwest Airlines, are following suit with Delta’s successful efforts.

Cincinnatians who plan to travel for business, co-ops and holidays might wonder what to expect this season.

“Due to the economy and decreased demands, I don’t think you’re going to see the huge holiday price increases that usually occur – because airlines are trying to get passengers,” Schempf said. “Our data indicates that fares are still low, which has helped return local travelers to CVG.”

The airport advises travelers to book in advance, arrive to the airport early and be patient. CVG also improved airport navigation to decrease passenger anxiety.

Steve Hager, a second-year international affairs student, has his own method of saving.

“I usually hunt around for the best prices on Web sites like Expedia months in advance to get the best price,” Hager said.

Airlines and airports are using several methods and making improvements to try to lure customers back.

Customers typically flock to other airports, like Dayton and Louisville, when ticket prices increase. Due to the loss of customers, CVG has lowered their fares to bring customers back and remain competitive, Schempf said.

“The past two summers I went to Europe and flew out of Dayton,” Hager said. “It was cheaper than when one of my flights got cancelled and I had to leave from CVG.”

The economy has forced some airlines to rethink their style of doing business – allowing more flexibility.

“The airline industry is remaking their business model to be more profitable in the future,” Schempf said. “An airline is a business, so they’re going to evaluate their profitability on each individual route and make adjustments to fares accordingly.”

Companies also increased prices of landing fees, concessions and parking fees to earn more revenue.

“If tickets are less expensive, people will feel more freedom to spend their money when they travel,” Kusanke said. “Tourists will spend more money in stores and their destinations, which would help the economy.”

The local deficit, which City Manager Milton Dohoney projects will total $51.6 million by 2010, does not directly affect CVG, Schempf said. Instead, the demand and needs of business travel reflect in sales.

CVG plans to continue working to improve areas within its control, such as increased efficiencies and cost competitiveness, but the economy and how quickly Cincinnati recovers play a big role in determining when the demand for flights will return.