AIR SERVICE
INDUSTRY UPDATES
The U.S. airline industry has been experiencing a complex landscape characterized by strong passenger volume and record revenues for some major carriers, offset by an overall dip in domestic demand in September and persistent operational challenges. The industry's performance during the recent government shutdown (October 1 - November 12, 2025) was significantly worse operationally and financially compared to the same period in 2024, as the shutdown disrupted a sector that was already facing challenges in 2025. Airlines have seen varied performance, with network carriers outperforming discount carriers as the busy holiday travel season approaches.
Legacy carriers (e.g., Delta, United, American) posted strong third-quarter results (through September), with record revenues driven by a focus on high-margin premium, corporate, and international travel. Industry analysts agree the legacy carriers are better positioned to manage current economic conditions. Discount carriers (e.g., Spirit, JetBlue) continued to face significant financial challenges and competitive pressure, with declining traffic and capacity reductions in some cases.
U.S. airlines handled a record number of travelers over the Thanksgiving period despite the recent effects of the government shutdown. On Sunday, November 30, TSA set a record as they screened 3,133,924 passengers. The airline industry forecasted more than 31 million passengers to fly during the holiday travel window, which this year stretched from November 20 to December 2, according to Airlines for America. In this same period, PSP projected 74,000 travelers to depart the airport.
Domestic airfares have eased recently, as cautious consumer behavior and a slowing labor market pushed airlines to manage capacity rather than compete on price. Lower jet fuel prices provided some financial relief, but overall costs (labor, maintenance) remain elevated.
PSP SERVICE UPDATES
Scheduled flights from Canada to PSP continue to trend down slightly entering the winter season, and this trend is expected into 2026. In the months of August, September, and October this year, Canadian passenger count into PSP is 33% down compared to the same three months last year. We continue to maintain conversations with our Canadian airlines to review current marketing efforts as well as uncovering additional partnership opportunities. PSP is also actively marketing to our local residents to boost Canadian outbound demand.
Despite the reduced flights from Canada, PSP seat capacity for 2025 is projected to show a +6% year-over-year increase while January – April 2026 is forecasted to gain 2% more seats versus same time in 2025.
Total passenger activity at PSP from January through October this year is +4%, 2,688,472 versus 2,584,890, ahead of same time last year.
Five new routes will begin operating in Q4 2025 versus Q4 2024. Those include Alaska’s Santa Rosa (STS) flight, American Airlines’ Charlotte (CLT) flight, Delta Air Lines’ Austin (AUS) flight, Southwest’s Chicago Midway (MDW) flight, and United’s Newark (EWR) flight.
Other popular returning seasonal flights in November and December include:
- Atlanta (ATL) on Delta and Houston (IAH) on United both starting on November 1
- New York (JFK) on Delta starting November 8
- Seattle (SEA) on Delta starting on November 9
- Winnipeg (YWG) on WestJet starting on November 11
- Toronto (YYZ) on Porter starting on December 11
- Washington Dulles (IAD) on United starting on December 18
Below is the latest data for PSP. Click HERE or the image below to view the multiple-page PDF report.
For more information on Air Service development, click here.
If you have any questions about air service, please contact:
Gary Orfield, Director of Tourism Development
gary@visitgreaterps.com | 760.969.1335
