American Airlines slows plans to cut service to three small cities it targeted

By | August 8, 2024

After announcing it was pulling flights from 15 cities, American Airlines is pausing on plans for Roswell, N.M., Sioux City, Iowa and Joplin, Mo.

 

American Airlines will slow plans to drop service to three of the 15 cities it announced last week, but the future of the carrier in those markets is still in doubt with the continuing travel industry downturn due to COVID-19.

 

The Fort Worth-based airline said it will hold off on dropping service to Roswell, N.M., while it talks with city and airport leaders there. American is also pausing plans to leave Sioux City, Iowa, and Joplin, Mo., but still intends to drop service if it gains Department of Transportation approval.

 

Sioux City and Joplin are deemed “essential air service” cities — a designation that dates back to the deregulation of the airline industry in 1978. The federal government provides subsidies to some smaller cities to ensure a minimal level of air service in locations that otherwise might not be profitable.

 

“In the absence of an extension of the Payroll Support Program, we’re faced with a host of difficult decisions to right-size our airline, given the significant and sustained drop in demand we’ve seen during the COVID-19 pandemic,” said American Airlines spokeswoman Nichelle Tait. “While our flights to Roswell are among those that have suffered when it comes to demand and profitability, we have been in touch with local officials and will defer our decision to suspend service to the market as those conversations are ongoing.”

 

With American Airlines as the only airline flying into Roswell, Mayor Dennis Kintigh said the city relies on the carrier for tourism, economics and getting local residents across the country.

 

“It’s more than 2 1/2 hours to get to the next nearest city with air service,” Kintigh said. “It would be a major loss for us.”

 

Related:American Airlines lists 15 cities that will lose air service when stimulus money expires

Tait said American Airlines hasn’t decided how long it will continue air service to Roswell. Small cities looking to maintain air service often have financial tools available, such as the ability to reduce landing and gate fees or spending marketing dollars to promote routes and airline service.

 

Roswell is also an important stop for American Airlines because it houses dozens of parked planes at Roswell International Air Center, including its idled 737 Max jets.

 

With the Sioux City and Joplin routes, American plans to apply this week to the transportation department to drop service “in the absence of a PSP extension that maintains the CARES Act service requirements,” Tait said.

 

The 15 cities where American Airlines may cut service

American said it will suspend service to these destinations as early as Oct. 7 unless a stimulus bill is passed that gives payroll support to air carriers.

City Airport code

Del Rio, Texas DRT

Dubuque, Iowa DBW

Florence, S.C. FLO

Greenville, N.C. PGV

Huntington, W. Va. HTS

Joplin, Mo. JLN

Kalamazoo/Battle Creek, Mich. AZO

Lake Charles, La. LCH

New Haven, Conn. HVN

New Windsor, N.Y. SWF

Roswell, N.M. ROW

Sioux City, Iowa SUX

Springfield, Ill. SPI

Stillwater, Okla. SWO

Williamsport, Pa. IPT

 

Steve Stockam, director of Joplin Regional Airport, said he hopes that any cuts American makes are temporary and that service will return as air travel improves.

 

Airlines, including American, and employee union leaders are pressuring federal lawmakers to move ahead with a second major stimulus package that could include billions of dollars more to subsidize airline jobs. Air industry officials want to extend the same program Congress passed in March that gave American about $4.1 billion in grants and more than $6 billion in loans, but in exchange protected jobs and required service to continue to all airports the airlines served before the COVID-19 pandemic.

 

American Airlines has also said that it will furlough 17,500 workers in October if a federal stimulus bill isn’t passed.

 

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