Jazmin Li
Smaller airports are often more expensive for travellers for a variety of reasons. Firstly, small airports often have high surcharges and landing fees. Secondly, there is usually very little competition between airlines at small airports, meaning that airlines can charge higher prices. Thirdly, small airports do not generate enough traffic to fill larger planes multiple times a day, so the higher cost of fuel and other expenses gets split among fewer passengers. Finally, small airports operate at a lower productive capacity than larger airports, meaning that they make less money while having to invest more in staff, infrastructure, and maintenance.
| Characteristics | Values |
|---|---|
| Fewer flights | Less frequent flights to and from small airports |
| Costlier tickets | Higher cost per passenger due to higher fuel costs and other expenses |
| Lack of competition | Higher prices due to lack of alternative options for customers |
| Inefficiency of small planes | Smaller planes are less cost-effective than larger planes |
| High surcharges and landing fees | Smaller airports may have higher fees |
| Low demand | Smaller airports may serve less popular routes with lower demand |
| Limited resources | Smaller airports may have lower capacity and fewer amenities |
| Fuel prices | Rising fuel prices impact the profitability of small airports |
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What You'll Learn
Smaller airports have higher surcharges and landing fees
Smaller airports tend to be more expensive for several reasons, one of which is higher surcharges and landing fees. Airports with higher traffic volumes can afford to reduce landing fees to incentivize airlines to use their facilities. Smaller airports, on the other hand, often have to charge higher landing fees to cover their operating costs, which may result in fewer airlines choosing to service them.
Additionally, smaller airports may have higher surcharges. Surcharges are often implemented to cover the costs of airport maintenance, infrastructure, and staff wages. Larger airports, which operate closer to their peak productive capacity, can spread these costs across a higher volume of flights and passengers. Smaller airports, with fewer flights and passengers, must distribute these costs among a smaller number of customers, resulting in higher surcharges.
The size of aircraft servicing an airport also contributes to the affordability of flights. Smaller airports often cannot generate enough traffic to fill larger planes multiple times a day, so they rely on smaller planes with fewer passengers. As a result, the cost of fuel and other expenses are distributed among fewer passengers, leading to higher ticket prices.
Furthermore, the law of supply and demand comes into play. Larger airports have a greater supply of flights and seats, allowing them to offer more competitive pricing. Smaller airports, with fewer flights and seats, have less supply and are thus subject to the laws of supply and demand, which can drive up prices.
While smaller airports generally face these economic challenges, it is important to note that there are exceptions. Some smaller airports may offer competitive pricing or even be among the cheapest, such as Long Beach, Burbank, and Milwaukee. Conversely, some larger airports can be among the most expensive, including JFK, Miami International, and Los Angeles (LAX).
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Less competition between airlines
One of the reasons small airports are more expensive is due to the lack of competition between airlines. When there is little to no competition, airlines can charge higher prices as customers have no other options. This is especially true for routes with only one airline serving them.
For instance, residents of smaller communities that rely on local airport services often face a trade-off between driving long distances to catch a flight from bigger airports with lower fares or paying higher prices at their local airport. This was the case for the Traverse City Area Chamber of Commerce, where local residents opted to drive to nearby cities for cheaper fares.
Airlines also tend to avoid serving small airports due to the challenge of filling larger planes multiple times a day, resulting in unprofitable operations. As a result, small airports may not attract low-fare airlines, contributing to higher prices.
Additionally, small airports have higher costs per passenger due to the use of smaller planes, which burn more fuel per passenger. This dynamic further increases ticket prices.
While small airports generally face these challenges, it is important to note that airfare prices can vary significantly even among small airports. For example, a cost analysis of America's regional airports in 2021 revealed that the average airfare at the most expensive small airport was over five times higher than the average airfare at the least expensive airport.
To summarize, the lack of competition among airlines serving small airports is a significant factor contributing to higher prices. This dynamic, coupled with operational challenges and higher costs per passenger, results in small airports often being more expensive for travelers.
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Smaller planes are less fuel-efficient per passenger
Smaller airports tend to be more expensive for several reasons, and one of the most significant factors is the type of aircraft that services these airports. Smaller planes are typically used for routes connecting outlying communities to big hubs. While these planes use less fuel overall, they are less fuel-efficient per passenger, resulting in higher costs that are passed on to travellers in the form of costlier tickets.
The higher fuel cost per passenger on smaller planes can be attributed to the limited number of passengers on board. With fewer passengers to split the fuel cost, each individual ends up paying more. This dynamic is further exacerbated by the rising oil prices, making it increasingly challenging for small airports to sustain larger planes with higher passenger capacities.
The economics of scale also come into play. Larger airports operate closer to their peak productive capacity, benefiting from economies of scale. They can spread costs across a higher volume of passengers, driving down prices. In contrast, smaller airports have lower passenger volumes, making it challenging to fill larger planes multiple times a day. As a result, airlines are incentivised to operate smaller planes, even though they may be less fuel-efficient per passenger.
Additionally, smaller airports often face limited competition among airlines. With fewer carriers serving these routes, there is reduced competitive pressure to keep prices low. Airlines may charge higher prices, knowing that travellers have limited alternatives. This dynamic further contributes to the higher costs associated with small airports and their reliance on smaller planes.
While smaller planes are less fuel-efficient per passenger, it is important to note that other factors also influence the overall cost of air travel. Variables such as landing fees, terminal rents, airline competition, and local incentives play a role in determining airfare. Nevertheless, the fuel efficiency of smaller planes remains a significant contributor to the higher costs often associated with small airports.
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Small airports have lower foot traffic, so less business revenue
Small airports often have fewer passengers and lower foot traffic, which directly impacts their business revenue. With fewer passengers, airlines have to charge higher prices for tickets to and from small airports. This is because the cost of fuel and other expenses is split among fewer passengers.
Airlines typically fly smaller planes, such as turboprops and 50-seat jets, to and from small airports. These smaller planes are less fuel-efficient, using less fuel overall but more fuel per passenger. As oil prices climb, airlines are retiring these smaller planes as they become unprofitable.
Small airports often struggle to fill larger planes multiple times a day and may not attract low-fare airlines that prefer markets with higher passenger volume. As a result, airlines may reduce the number of flights to these airports, further decreasing competition and driving up prices.
The lower foot traffic at small airports also affects their ability to attract businesses such as restaurants, car rental companies, and vendors. This results in fewer amenities and services available to passengers, which can impact their overall travel experience.
While small airports typically face these challenges, it's important to note that airfare prices can vary greatly, even among small airports. Some small airports may offer competitive prices or provide incentives to airlines to maintain service, such as reducing landing fees and terminal rents. However, the general trend suggests that small airports with lower foot traffic often have higher ticket prices due to the reduced business revenue and increased operational costs per passenger.
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Oil prices have risen, making it harder to maintain commercial airline service
Oil prices have tripled since the era of $30-a-barrel oil, when the country's network of regional airports was established. This has made it harder to maintain commercial airline service to underperforming airports. As oil prices climb, airlines are retiring turboprops and 50-seat jets because they are unprofitable. Small airports do not generate enough traffic to fill larger planes multiple times a day, or attract low-fare airlines. This means that the higher cost of fuel and other expenses gets split among fewer passengers, raising ticket prices.
Small airports have higher surcharges and landing fees, and there is very little airline competition in the region. This means that airlines can charge higher prices as customers have fewer options. Small airports are also less cost-effective to run, as the cost of running the airport is spread among fewer passengers.
Small airports may struggle to maintain commercial airline service as airlines cut back on flights to unprofitable markets. Communities that rely on small airports may face disincentives to fly, such as having to drive long distances to catch a flight, and factor in unpredictable weather, traffic, and airline delays.
However, it is important to note that there are exceptions, and some small airports can offer cheaper flights than larger airports. For example, Long Beach, Burbank, and Milwaukee are among the cheapest airports, while some larger airports like JFK, Miami International, and Los Angeles (LAX) are among the most expensive.
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Frequently asked questions
Small airports are more expensive because there is less demand for flights to these locations, meaning airlines have to use smaller planes which are less fuel-efficient per passenger.
Small airports may have high surcharges and landing fees, and there is often very little airline competition in the region, allowing the few airlines that do operate there to charge higher prices.
Larger airports operate closer to their peak productive capacity, making more money while investing proportionately less back into staff, infrastructure, and maintenance, leading to lower prices.
Aspen-Pitkin County/Sardy Field in Aspen, Colorado, is one of the most expensive small airports in the US, with an average airfare of $581.88. Huntsville, Alabama, is another example of a small airport with high prices.
Travellers can use travel credit cards to earn rewards points, research how to avoid baggage fees, and use products or services that help find affordable airfare.
