Seat capacity is down at AUS, but new federal rule entitles travelers to refunds for canceled flights

During the Airport Advisory Commission meeting July 10, Deputy Chief of Air Service Jamy Kazanoff updated commissioners on a slight drop in seat capacity for August – so maybe start booking those late summer vacations now. Plus, when a new federal rule goes into effect in October, travelers will be entitled to full refunds for flight cancellations or delays.

May was a record-breaking month for Austin-Bergstrom International Airport, as capacity for seating hadn’t grown in a year, but there were 4 percent more passengers. That means more business for airlines. But if you’re worried about overcrowding, never fear: The “load factor” (the measure of overall capacity) in May last year was only 81 percent, meaning there was room to grow. Unfortunately, that room is shrinking.

Airline seat capacity for August is down 10 percent from last year “because the airlines have realized that the back-to-school, second, third week of August affects their travel patterns,” Kazanoff explained. “Also inflation has affected some travel habits for those on a tighter budget. So that’s been ratcheted back a bit.”

However, August’s load factor was only 71 percent last year, meaning should the demand be there, there’s even more room to grow than in May. 

The other factor affecting August travel plans is fewer Allegiant flights from AUS. Because of cost increases at the new terminal from the South Terminal the airline used to fly out of, it closed its base here but pledged to continue service. The change will mean the airline can fly only to other Allegiant bases – meaning it will keep 11 routes but drop six. Commission chair Wendy Todd asked whether there would still be service via connecting flights to smaller airports like Sioux Falls – unfortunately, Kazanoff said, Allegiant doesn’t offer connecting flights like major national airlines do. But savvy travelers can take advantage of “what we call double coupons. So the clever customer can fly Allegiant to Denver and then fly on a separate ticket from Denver to another market,” Kazanoff said.

Markets still remaining for Allegiant include Las Vegas, Provo, Des Moines, Grand Rapids, Pittsburgh, Knoxville, Asheville, Sanford, Orlando and Sarasota. As far as how it affects the entire airport, it’s only down one destination this July compared to last year. Nonstop flights out of Austin can be checked on the AUS website under Traveler Information. 

In other pertinent news for the holiday traveler, a June study from the travel company Upgraded Points looked at the U.S. airlines and airports most impacted by a new Department of Transportation rule requiring automatic flight refunds for canceled or significantly changed flights (diverted or delayed for more than three hours). Airlines will no longer be allowed to issue refunds in the form of travel vouchers or credits, beginning Oct. 28 this year. The study notes that “while the new regulation provides some peace of mind for air travelers on the surface, the rule’s overall financial impact on airlines and customers is unclear. Airlines might respond by adjusting their operations, pricing strategies, or a combination of both.”

To identify the airports most impacted, researchers analyzed domestic flight data for 2023. Last year, major airlines like United, American and Delta would have owed passengers over $1 billion in automatic refunds for cancellations and delays nationwide. However, at AUS, the new regulation would have impacted only 2.8 percent of domestic flights. AUS passengers would have been entitled to an estimated $53 million in refunds in 2023, but that is the sixth-least of any large hub airport in the country. So the Austin traveler shouldn’t worry too much about significant delays in the first place – and come October, they’ll be entitled to a full refund if it does happen.

Photo by LoneStarMike, CC BY 3.0, via Wikimedia Commons.

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