AIR SERVICE

Industry Updates 

The global aviation industry entered 2026 facing severe operational and financial headwinds, including the most recent conflict in the Middle East, which has caused widespread flight cancellations, airspace closures, and significant rerouting, particularly impacting major hubs like Dubai and Doha.  

Funding for the Department of Homeland Security lapsed in February after Congress failed to reach a deal, halting funding for several government agencies, including the TSA. Almost 50,000 TSA airport ‌security ⁠screeners are currently working without pay. The year has also brought a series of operational challenges, including a sudden airspace shutdown around El Paso, Texas, confusion around Canadian-built aircraft certification, a brief pause in TSA PreCheck and Global Entry programs, continued increases in labor costs, and a surge in jet fuel prices—up more than 100% year-to-date following the strikes in Iran.  

Despite the unexpected turn of events, some of the country’s largest carriers remain bullish about their prospects this year as they continue to leverage strong demand for premium products to maintain profitability despite rising costs. However, budget airlines in North America, such as Spirit Airlines (which recently filed for Chapter 11 bankruptcy), are struggling with high labor costs and a slowdown in price-sensitive domestic travel.  

PSP Service Updates

Year-to-date through February, total passenger traffic at PSP is down 2.6%. However, severe weather events across the United States in January resulted in the cancellation of more than 150 flights at PSP—representing over 48,000 seats—which contributed to a 6.8% decline in total passenger count compared to January 2025.

Canadian passenger arrivals continue to pace down. Through February 2026, total passenger counts from Canadian carriers are down 12.4% year-to-date compared to the same period last year (107,178 vs. 93,919). Looking ahead, the Canadian pullback may persist over the coming months; however, increased capacity from domestic carriers is expected to keep total available seats through June in line with the same period in 2025.

In Q2, we will continue connecting with airline network planners via regular outreach, as well as visiting Allegiant Airlines headquarters and attending both the Airport Roundtable event and the Jump Start Air Service Development Conference. Finally, be on the lookout for an invitation to a GPSNEXT Air Service Development webinar, where representatives from PSP and Ailevon Pacific, our air service consultants, will provide valuable updates and insights. This webinar is scheduled for May 7 at 10:00 am. Zoom link and more details forthcoming.   

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