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Staff outlines air-service gains, Allegiant cut to LAX and route development needs; city subsidy options discussed
Summary
Airport staff presented air-service data showing passenger growth and capacity increases, described Allegiant's LAX service cut and early performance of the Monterrey route, and discussed the need for stakeholder funding to support new routes.
The airport's air-service staff reviewed recent airline performance and route development activities, including examples of recent growth and ongoing outreach to carriers.
The staff presentation noted strong growth in 2024 and through early 2025, with American Airlines and United increasing capacity into Laredo. "American Airlines passenger were the most had the most increase to 35," an air-service presenter said, citing comparative percentage growth. Staff also noted the airport is a predominantly American market (staff cited roughly 60 percent market share for American) and that Allegiant's service to Los Angeles was cut as the carrier restructured seasonal routes.
On new service: staff reviewed a small-carrier route to Monterrey that operates with small aircraft (Caravan-class equipment) and said the average load factor has varied; staff said an average of roughly six passengers would move the route toward break-even and that marketing efforts are under way (billboards and initial paid/outreach activity).
Funding and incentives: staff and board discussed the role of local subsidies, revenue guarantees and stakeholder contributions. Staff said the city has used ad-hoc funding in the past to support air service and that a standing, earmarked fund would make route recruitment easier, but cautioned that such funds must be weighed against other city priorities and require council action.
Why it matters: airline decisions on frequency and equipment depend on demonstrated demand and, at times, temporary revenue support packages; the board noted leakage to nearby larger airports (San Antonio and Austin) where fares and choices attract some Laredo travelers.
Ending: staff plans continued airline outreach and marketing support for targeted routes and asked the board to consider stakeholder engagement on funding options if route development is to be prioritized.
