CVG unseated as No. 1 – and it's a good thing
Jason Williams, jwilliams@enquirer.com 6:03 p.m. EDT April 28, 2015


Discount carrier Allegiant Air has helped lower fares at CVG.
(Photo: Provided)

Cincinnati/Northern Kentucky International Airport no longer has the nation's highest ticket prices – and new data released Tuesday is tangible evidence that discount airlines are working to lower overall fares at CVG.

The airport dropped to No. 3 in the federal airfare rankings during the fourth quarter of 2014. That ended a 3 1/2-year streak of CVG ranking either No. 1 or 2 – and the run stopped thanks mostly to the rapid growth of Allegiant Air and Frontier Airlines in 2014.

But it's not time for Greater Cincinnati and Northern Kentucky fliers to throw a party, airline experts say. One quarter doesn't make a trend, and CVG's average roundtrip ticket price of $485 still was $92 higher than the national average.

Most of CVG's discounted tickets are offered to vacation cities – and despite Delta Air Lines' massive cuts at its once-booming Cincinnati hub, the Atlanta-based carrier still has a strong grip on fares to several top business markets.

"This is great for travelers going to the leisure destinations served by both Allegiant and Frontier, but options to other locations are likely going to continue to shrink as Delta continues to decrease the size of its operation," said Brett Snyder, an airline expert and author of the Cranky Flier blog. "In the long run, that may create more opportunities for ultra-low-cost carriers in certain markets, but only time will tell."

Delta has made two rounds of cuts already at CVG this year. In assessing CVG's latest airfare rankings, San Francisco-based travel expert Henry Harteveldt called Delta's cuts "a mixed blessing."

He added: "Cincinnati-area residents may see fares to leisure destinations fall, but fares to business destinations may remain relatively expensive."

Madison, Wisconsin, took over as having the nation's highest fares in the fourth quarter, $505 for a roundtrip ticket. Sanford, Florida, had the lowest average ticket price in the fourth quarter – $99. Fares are low at the Orlando-area airport because Allegiant Air has major operations there.

Allegiant Air arrived at CVG in February 2014, and has made several expansions since. Its growth sparked competitor Frontier to also add new flights to places such as Las Vegas, Phoenix, Orlando. The airlines' impact started to show in the latest airfare statistics.

CVG ranked No. 5 in the largest yearly decrease in fares, according to the Bureau of Transportation Statistics. The airport's average ticket price was $29 cheaper compared to the fourth quarter of 2013, a year-over-year decrease of 5.7 percent. Further, CVG's average fourth-quarter 2014 fare was $48 lower than the third quarter last year.

"This reflects the improved competitive position of CVG," airport CEO Candace McGraw said. "With the support of the region, we will continue to be successful in growing our low-cost carrier presence and continue to improve our fare position."

An airport typically needs to have low-cost carriers account for 15-20 percent of overall seats to stay out of the nation's top-10 rankings for highest airfares, according to airline experts and airport officials. Allegiant and Frontier accounted for 11 percent of seats in the fourth quarter, according to airport data.

CVG officials project low-cost carriers will account for 16.5 percent of all seats at the end of the second quarter. In the coming weeks, Allegiant Air plans to start seasonal flights to Savannah-Hilton Head (May 8) and Austin, Texas (June 4) from Cincinnati.

How did CVG stack up?

CVG's four main regional competitors – Dayton, Columbus, Louisville and Indianapolis – all experienced a year-over-year increase in average roundtrip ticket prices during the fourth quarter of 2014. Dayton's fares were up 15.2 percent from fourth quarter 2013, the largest increase in the U.S. Here's a look at the latest fares for each airport (with airfare ranking):

• CVG: $485 (No. 3)

• Dayton: $431 (No. 26)

• Louisville: $422 (No. 31)

• Indianapolis: $421 (No. 33)

• Columbus: $411 (No. 39)

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