Wealth Finance
Delta to cut service to 24 smaller airports
Delta announced plans Friday to cut service to 24 small airports because the company is losing $14 million a year on flights that are often half-full.
The company notified the U.S. Department of Transportation that it plans to cut service to cities like Pierre, South Dakota; Butte, Montana; and Waterloo, Iowa. Delta said flights in the 24 cities are only 52 percent full on average. The full list of affected communities is available on Deltas website.
Travelers in those communities may need to drive to the closest larger airport if they want to travel nationally, because many of the smaller airports offer only regional service apart from Deltas flights.
Sixteen of the 24 airports are federally subsidized as part of the Essential Air Service Act, which provides federal dollars to airlines in exchange for serving smaller communities. That act is set to expire in 2013 unless it is renewed by Congress. Delta said it would like to continue serving about a third of the affected communities, but it would require larger EAS subsidies to do so.
The move highlights a larger trend, as airlines are focusing more on the countrys 29 largest airports. Those larger airports account for 70 percent of all passenger traffic, according to the Federal Aviation Authority.
The DOT has 90 days to select a new EAS carrier, but Delta said it will continue to serve the affected communities through its Delta Connection partners until a replacement is found and appropriate funding is available. Delta said it was also coordinating with other carriers to bid on some of its routes in the affected cities.
Customers who have booked a flight in one of the 24 markets can call Delta Reservations at 1-800-221-1212 to make alternative travel plans or request a refund.
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