Airfares at Colorado airport at lowest levels in 25 years

Local business leaders and city officials call it the Southwest effect — and for good reason.

After Southwest Airlines brought service to the Colorado Springs Airport nearly two years ago, local air fares plunged to a 25-year low, according to recent federal transportation data.

What’s more, the gap between air fares for passengers who fly out of the Springs versus those who drive to Denver International Airport has shrunk to its lowest level in 20 years, the data show. As a result, flying out of Denver isn’t quite the bargain it once was.

“We are seeing the Southwest effect — fares are down and traffic is up,” said Joe Nevill, the Colorado Springs Airport’s air service development manager. “Traffic is growing and fares are going down in most markets (from Colorado Springs).

“We believe we are taking passengers off the road to Denver,” Nevill said.

“We are becoming more competitive vs. Denver, and that helps us keep more local traffic. Airlines see that, and it turns into good results and more (service) expansion.”

According to figures from the U.S. Bureau of Transportation Statistics:

• The average fare for passengers who flew out of the Colorado Springs Airport fell to $312.13 in 2021, the lowest annual average since 1997. That was the last year that low-fare startup Western Pacific Airlines operated a hub from the Springs Airport before it moved to Denver and later filed for bankruptcy.

• The decline in local fares also cut the difference in average fares between the Colorado Springs and Denver airports by half from the previous year to just $40, the bureau’s data shows.

• Annual data for 2022 won’t be available until April, but similar data (which doesn’t include passengers on connecting flights) from the U.S. Department of Transportation show the difference in average fares between the Springs and DIA continued to decline last year and was less than $20 in each of the first three quarters of 2022. That’s the smallest fare gap between the airports since 2003.

“A narrower gap between Colorado Springs Airport and Denver International Airport’s airfare gives our businesses more options and flexibility in their travel plans,” said Johnna Reeder Kleymeyer, the Colorado Springs Chamber & EDC’s president and CEO.

“Notably, the ‘Southwest effect’ continues as the data points to a shrinking gap in overall fares since their arrival (in Colorado Springs).”

Doug Price, CEO of Visit Colorado Springs, the area’s lead tourism agency, said the declining fare gap between Colorado Springs and Denver is a sign Southwest’s impact as well as cost-containment efforts by the Springs Airport.

Fares in Colorado Springs had been lower than in Denver from 1993 to 2001, Price said, but local fares were higher for the next 20 years, which makes the recent decline in the fare gap a welcome development for local travelers.

“At Visit COS, we urge both residents and visitors to look hard before they book,” Price said. “It’s important to factor in the value of time (for travel to each airport and in security lines) and costs (airfares, tolls and parking) in comparing airports. The Colorado Springs Airport, he added, “is heading in the right direction.”

A note of caution: Consumers should be aware that both sets of federal Transportation Department data are average domestic fares, so individuals looking for flights might find higher or lower fares when they compare fares for specific flights from Colorado Springs and Denver.

In any case, local passengers responded in a big way to the lower fares.

The number of enplanements — travelers who board outgoing flights — from the Colorado Springs Airport totaled 1.07 million in 2022 — an increase of 15% over 2021 and a jump of 27% from pre-pandemic levels in 2019.

Last year’s enplanements were the highest annual total since 2000 and the first time the Colorado Springs Airport has reached more than 1 million outbound passengers in 15 years. The increase came in spite of Southwest canceling many flights in late December due to operational issues.

Southwest’s impact on fares also was demonstrated by contrasting its average fare in the third quarter of last year, when its Colorado Springs fares were an average of $5 less than its fares in Denver, according to the Bureau of Transportation Statistics data. Average fares for the three other airlines serving Colorado Springs were $64 higher than their Denver fares.

Nevill believes the gap between Colorado Springs and Denver fares will continue to narrow this year “as long as Southwest continues to be a big part of the market here.” Southwest carried nearly half of departing passengers last year.

Southwest’s competitors in Colorado Springs — American, Delta and United — have responded by switching from 50-seat regional jets to larger-capacity aircraft and additional flights to their current destinations that has significantly expanded the seat capacity on flights from the local airport, Nevill said.

Sun County Airlines announced plans in November to expand to Colorado Springs and offer seasonal service to Minneapolis-St. Paul starting June 8, prompting Delta Air Lines to add that city to its local schedule and restore service to Atlanta, both on June 5.

Southwest also has expanded its initial schedule of 13 daily flights to Chicago, Dallas, Denver, Las Vegas and Phoenix to 16 daily flights. The low-fare giant also has experimented with holiday-season service to Houston, San Antonio and San Diego.

The carrier’s fares are likely to stay low for a while — Southwest launched a major fare sale this month as it tries to lure back passengers reluctant to book in the wake of the airline’s December cancellations and delays.

Mike Boyd, an Evergreen-based aviation consultant who formerly worked with the Colorado Springs Airport, said Southwest may trim flights, locally and nationally, in coming weeks and months as it tries to solve its operational issues. But his outlook for local air service remains upbeat.

“The market can support this (the current level of service) and perhaps much more,” as the nation’s major airlines and some low-fare upstarts battle to attract passengers, Boyd said.

He cautioned that a large number of local passengers always will drive to Denver for a much larger selection of destinations, especially international cities popular with many travelers such as London, Paris and Tokyo.

“Denver,” Boyd said, “remains the gateway for the entire region.”