Airport official projects 10M riders in New Orleans to set record

Passenger counts at Louis Armstrong New Orleans International Airport fell just short of a record-breaking 2004.

Airport officials predict the record will fall this year as the industry continues to rebound from the Sept. 11, 2001, terrorist attacks.

The airport served 9.72 million passengers in 2004, its best year since 2000, when the 9.87 million passengers boarded or arrived in New Orleans.

Although some of the nation's major airlines are teetering on bankruptcy, Roy Williams, Armstrong International's aviation director, said the airport should exceed 10 million passengers for the first time in 2005.

I certainly expect our 2005 numbers to be greater than 2004, Williams said. We think our carriers are going to continue to add service and traffic will continue to grow as the economy strengthens. Unless we have an economic depression, we should reach our all-time record.

The airport handled 4.7 percent more total passengers last year over the 9.29 million passengers who traveled via New Orleans in 2003.

Nationally, airlines served 540.5 million passengers in 2004, a 5.7 percent increase over 2003, according to the Air Transportation Association, a Washington, D.C., group representing the country's major air carriers.

New Orleans airport officials had expected 10 million passengers last year but Hurricane Ivan canceled several September flights as peak summer travel was ending, Williams said.

The numbers were really strong and almost every one of our carriers' numbers were up over 2003, he said.

The only exceptions were Delta and Northwest airlines.

Williams said Northwest ridership dipped after it dropped one of its four daily flights from New Orleans to Memphis, Tenn. The Minneapolis-based airline served 537,246 passengers in New Orleans in 2004, a 6 percent decrease from 571,457 in 2003.

Delta, the airport's second-largest carrier, boarded 1.19 million passengers last year, an 11.2 percent decrease from 1.34 million in 2003. The Atlanta-based airline barely averted a Chapter 11 filing, ending the 2004 fiscal year with a $5.2 billion net loss, including $2.2 billion in the fourth quarter alone, and a loss per share of $41.07.

Delta lost $773 million in 2003 with a loss per share of $6.40.

2004 was a challenging year for Delta, a fact that is clearly represented in the results we reported, Michael Palumbo, Delta's chief financial officer, reported in the year-end earnings statement. A combination of record high fuel prices and weak domestic yield has materially impacted our financial results.

Delta's fuel expenses increased 75.5 percent, or $385 million, with approximately 94 percent of the increase resulting from higher fuel prices. A run of four major hurricanes on the Southeast during peak travel times also caused an estimated $50 million loss, Palumbo said.

This year was also one of change, in which we developed and began to implement a plan for our business that is designed to enable us to compete going forward. However, a great deal of work remains to be accomplished and we will continue to face significant challenges in 2005, he said.

Last Monday, Delta initiated the largest single-day schedule redesign in aviation history as the airline expanded service at its Atlanta, Cincinnati and Salt Lake City hubs, eliminated its hub at Dallas/Fort Worth and increased direct flights between non-hub cities.

Delta predicts the change, called Operation Clockwork, will save up to $200 million a year.

Delta Air Lines stock sold for $10.67 a share in trading Thursday, about half the 52-week high of $20.50.

But Delta's operational changes will have minimal impact on New Orleans, where the airline has 128 full-time employees, said Michelle Duffourc, spokeswoman for the New Orleans airport.

Delta will redirect flights to other airports, with New Orleans adding two daily flights to Salt Lake City and at least one to Cincinnati and Raleigh-Durham, N.C.

Overall, we'll lose about 50 seats or less a day. It's a very minimal loss of seats but New Orleans has regained the Salt Lake market, she said.

Eighteen domestic and international airlines serve the airport. Southwest Airlines is the airport's largest carrier with 31.1 percent of the market share last year, followed by Delta Air Lines with 12.2 percent, American Airlines with 11.9 percent, Continental with 10.2 percent and United with 8.3 percent.

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