Eppley Business Weathers High Fuel Prices, Terrorism

The flow of passengers through Eppley Airfield continued to rise during the first half of 2005, even with fuel prices driving some fare increases.

Eppley posted a 9.6 percent increase in passenger numbers through June, compared with the same period in 2004. For the month of June, the airport recorded 9.5 percent more passengers than in June 2004.

And international travel has not dropped off since the July 7 terrorist bombings in London, said Don Smithey, executive director of the Omaha Airport Authority.

The 9/11 attacks in the United States sent the already struggling air travel industry into a severe slump. Air travel has slowly rebounded, and airport operators nationwide have braced themselves for the effect of future terrorist attacks.

Smithey said he watched for reaction to the London attacks in passenger numbers and found nothing.

Fuel prices could affect travel in the second half of the year, Smithey said, but barring a dramatic price increase, the passenger total should add up to a second consecutive record year.

Some airlines are not well-hedged against rising fuel prices and will be under pressure to raise fares to make up for the higher costs, he said.

“It’s going to be a particularly difficult time for them.”

So far, increases for fares from Omaha have been modest.

“Even though they’ve got high fuel prices, that fare is driven by competition,” Smithey said. “That’s what makes our fares very competitive. We have competition in Omaha.”

Since gasoline prices also have increased, driving hasn’t necessarily become more attractive. Travelers also must consider the extra time it takes to drive.

“Every hour in an airplane is a day in a car,” Smithey said.

Eppley recently added a third passenger security checkpoint for both the north and south terminals. The change has helped keep summer crowds moving.

“We are hopefully a step ahead with our security functions,” he said. “We’re comfortable we can handle increasing numbers of passengers without any difficulty.”

In August, Delta will move to gates in the south terminal, helping to balance passenger loads between the terminals. Bag checks also will be performed behind the ticket counter for Delta, a change that Eppley eventually will make for all the airlines.

Every carrier serving Eppley posted an increase in passengers last month compared with the previous June. Those results might help the airport attract new service or more or larger flights to current destinations, Smithey said.

“They can’t ignore the rate of growth,” he said. “They cannot ignore the Omaha market.”