Massport officials expect US carriers' domestic traffic to slow this year as airlines scale back flights.
(Elise Amendola/Associated Press/File 2007)
More travelers flew through Logan International Airport in 2007 than ever before. But this year may be more challenging.
The airport served 28.1 million passengers last year, edging past both 2006 and the previous record in 2000 by 1.4 percent. Last year's passenger traffic also for the first time rose above levels from before Sept. 11, 2001, when terrorist attacks caused a slowdown in US air travel.
But the Massachusetts Port Authority, which runs Logan, expects US carriers' domestic traffic to slow this year as airlines scale back flights. If that happens, Massport isn't sure whether enough international travelers will fly through Logan to boost overall pas senger traffic this year.
"Ironically, passenger traffic is increasing at a time when record high fuel costs and a slowing economy are causing airlines to cut back on frequencies and routes, or go out of business altogether," Thomas J. Kinton Jr., Massport's chief executive, said in prepared remarks at the agency's monthly board meeting yesterday.
Just last week, Delta Air Lines' partner, Big Sky Airlines, ceased flying to and from Logan, citing rocketing fuel prices, unusually bad weather, and disappointing revenue. Comair and Cape Air have picked up some of the vacated routes to small and midsize New England communities, Kinton said.
Massport believes more robust international travel could offset the looming domestic decline. Boston became an especially attractive destination for Canadians and Europeans during the latter half of last year as favorable exchange rates and new or expanded routes between Boston and Spain, the Netherlands, the United Kingdom, and Ireland provided extra incentive to enjoy New England. That helped make up for the 6 percent fall in passengers Logan experienced during December because of domestic route reductions and cancelled flights due to foul weather.
Logan served 375,167 more passengers last year than it did in 2000 despite having about 88,459 fewer flights, or 18 percent fewer take-offs and landings. The uptick was particularly noticeable on international flights during the summer and domestic flights during Thanksgiving week.
Logan could enjoy a new surge in international travel sometime after the summer of 2009 if it lands a deal with Grand China Airlines for a nonstop route between Boston and Beijing. The Chinese carrier recently applied to the government agency that regulates aviation in China for permission to operate that route, Kinton said. But getting it off the ground requires more approvals and also is pegged to when the Boeing Co. delivers its 787 Dreamliner aircraft, which the manufacturer this week said would be delayed for another three months. It wasn't clear yet how much Boeing's third postponement would set back Grand China Airlines' timeline.
International flights are becoming more important in the airport business because US legacy carriers are shifting their resources from domestic routes to ones headed abroad. "They're becoming more global airlines to compete," Kinton said in an interview, adding that Logan is well-positioned to capitalize on that change because Boston is a gateway city.
Separately, the Port of Boston, which Massport also operates, set records last year, too, Kinton said. It handled 10 percent more cargo than in 2006 and 12 percent more scheduled cruise passengers on 25 percent more ships than in 2006.
Nicole C. Wong can be reached at nwong@globe.com.
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