United Airlines pulls out of struggling Atlantic City, After only seven months, United Airlines is pulling out as one of only two carriers at Atlantic City International Airport, discontinuing service to Chicago and Houston from the ailing gambling resort.
United issued a statement today saying not enough people wanted to fly to Atlantic City.
"In every market we serve, we continually review demand for the service and our Atlantic City routes are no longer sustainable," the statement read. "We're disappointed that the service from Atlantic City International Airport (ACY) didn't meet our expectations and we will end the flights to Chicago and Houston effective Dec. 3, 2014."
United began Atlantic City service in April to its midwestern hub at Chicago's O'Hare International Airport and Houston's George Bush Intercontinental Airport.
The new service raised hopes among Atlantic City's boosters — most notably Senate President Stephen Sweeney — that it would lead to more overnight guests, who gaming analysts have long said are a key to Atlantic City's sustained viability. But a failure to attract bigger spenders than the day-trippers who arrive on buses everyday has forced four casinos to close in the past year alone, as legalized gambling has proliferated in various forms.
United's ExpressJet subsidiary has been operating one flight per day to Chicago and a single flight to Houston, but unable to fill even 50 seats on its Embraer commuter jets.
United, which has its northeastern hub at Newark Liberty International Airport, was persuaded to fly to Atlantic City by its Newark landlord, the Port Authority of New York and New Jersey, and the new service was announced jointly in November by United CEO Jeff Smisek and Gov. Chris Christie.
A Christie spokesman, Michael Drewniak, issued a statement following United's announcement today: "There will be ups and downs in the process of reinvigorating Atlantic City, but we hope to work with air carriers on new opportunities."
The Port Authority had signed a 15-year contract to manage Atlantic City International with the airport's operator, the South Jersey Transportation Authority, in July 2013, in a deal that officials said would help attract more carriers to Atlantic City.
And they were right, initially. But today, the two agencies issued a statement lamenting United's decision.
"The South Jersey Transportation Authority and Port Authority are disappointed in United Airlines’ announcement that it will cut its two routes between Atlantic City International Airport and Chicago and Houston after only seven months of operations, and urges the carrier to reconsider its decision to give the service more time to develop," the statement read.
United's departure once again leaves Atlantic City International with just one carrier, Spirit Airlines.
Two months ago, Trump Plaza became the resort's fourth casino to close this year, joining the Atlantic Club, Showboat and Revel. Soon, all bets may be off at Trump Taj Mahal, as well, after its parent company declared bankruptcy in September.
