LAX suffers in weak economy

Hit hard by a deepening recession and persistent declines in air travel, the number of passengers at Los Angeles International Airport dropped by almost 3 million in 2008, reversing the airport’s slow recovery from 9/11 and the severe acute respiratory syndrome outbreak of 2003, new figures show.

Year-end statistics from Los Angeles World Airports show that passenger levels at the nation’s fourth-largest airport decreased from 62,438,583 in 2007 to 59,497,539 last year, a drop of 4.71%. Air freight handled at LAX declined from about 2 million tons in 2007 to about 1.8 million tons last year.

Most of the passenger and cargo losses occurred in the last four months of the year, including December, a traditionally heavy travel month, which recorded a 16.34% decline in passengers. The decline in travelers also has occurred faster than airlines can remove available seats from the market, and the downward trend will probably continue this year, according to airline scheduling data.

“Passenger levels have been off recently and the economy stinks. This is just a reflection of that,” said Alan Rothenberg, chairman of the Board of Airport Commissioners.

Los Angeles World Airports operates LAX, LA/Ontario International Airport, Palmdale Regional Airport and Van Nuys Airport.

LAX reached a peak in 2000 with 67.3 million passengers, but 9/11 and a global outbreak of severe acute respiratory syndrome two years later drove passenger levels down to 55 million in 2003. By 2007, the traffic had recovered to more than 62.4 million. Then came last summer’s high fuel prices and the deteriorating economy.

The downturn has affected other airports in the region as well. Passenger levels at John Wayne Airport in Orange County declined from slightly less than 10 million in 2007 to about 9 million last year.

In the first 11 months of 2008, Bob Hope Airport in Burbank had almost 507,000 fewer passengers than during the same period of 2007, a drop of 9.3%.

Passenger levels at Long Beach Airport, however, have remained steady at about 3 million a year.

Airport statistics released Tuesday show that Ontario handled 6,232,761 passengers last year, about a million less than in 2007.

Palmdale handled 21,805 passengers before United Airlines canceled its operations in December, leaving the High Desert city without commercial air service.

The decline in air travel, which can reduce airport revenue from landing fees, concessions and parking, coincides with a multibillion-dollar plan to modernize LAX. The high-priority projects include new concourses and gates at the Tom Bradley International Terminal, a wide cross-field taxiway, and utility plant improvements.

Because of the nation’s sagging economy and tight credit markets, several major airports across the county have not been able to raise money to finance new terminals and runways. Los Angeles World Airports “will likely need to float bonds for the projects,” said Jack Keady, an airline industry consultant based in Playa del Rey. “Whether they can do the Bradley super-expansion remains to be seen.”

Gina Marie Lindsey, the executive director of the airport agency, said that it would be easier to finance projects if passenger volumes were growing.

But, she said, the airport can afford the projects if the agency is careful about maximizing its revenue sources and controlling costs.

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dan.weikel@latimes.com