18-05-2025
Trump administration's proposed $300M cut to Essential Air Service could ground Tupelo flights
TUPELO – Air service in Tupelo could be affected by a drastic cut in the Essential Air Service program, which provides subsidized air service in 177 smaller communities around the country. Besides the All-America City, the proposed cut would affect two other Mississippi cities: Greenville and Hattiesburg.
The Trump administration's budget proposal released earlier this month seeks to slash federal spending and includes a $300 million reduction to EAS. At the end of 2024, the Department of Transportation provided EAS subsidies worth nearly $592 million to the 177 communities.
"The EAS program funnels taxpayer dollars to airlines to subsidize half-empty flights from airports that are within easy commuting distance from each other, while also failing to effectively provide assistance to most rural air travelers," the administration says in its budget proposal. "Spending on programs is out of control, more than doubling between 2021 and 2025. The budget reins in EAS subsidies by proposing a mix of reforms to adjust eligibility and subsidy rates to help rural communities' air transportation needs in a more sustainable manner."
The budget doesn't outline what steps it would take to initiate reform nor identifies which communities would be affected by the cut or what would replace EAS.
Tupelo Airport Authority board chairman Eric Gibens said the board is monitoring the situation closely.
"Any cuts are a concern," he said. "Contour has been successful, and when they review that, they will see the flights are needed here. Hopefully, they look at the numbers and see their flights are for business and leisure and our flights are full. We'll definitely keep an eye on it, but it's wait and see at this point"
Tupelo has taken part in the EAS program since 2009 after Northwest Airlines, followed by Delta Airlines, ended their regional flights to Memphis and Atlanta. Following the unsatisfactory performance from two airlines from 2009-2015, a new airline, Contour, stepped up in April 2016. It has provided air service since, and passenger enplanements, or boardings, have soared.
In Tupelo, Contour has recorded at least 10,000 boardings in seven of the eight full years it has provided service. The only exception was in 2020, with the start of the pandemic.
Currently, Contour provides daily round-trip flights to Nashville and Dallas.
Through the first three months of this year, boardings were up 37% compared to a year ago.
Contour's four-year contract, which began last October and runs through Sept. 30, 2028, has an annual subsidy of $6,924,450 in the first year, with a yearly increase of 5% in each of the next three subsequent years.
Mississippi's two U.S. Senators said they support EAS and hope the administration backs off from talk of drastic cuts to its funding.
'It is not unusual for administrations to suggest that EAS be terminated. However, there is strong bipartisan support for this program, and I am confident the House of Representatives and Senate will continue our strong support," said U.S. Sen. Roger Wicker.
In statements to U.S. Department of Transportation Secretary Sean Duffy, U.S. Sen. Cindy Hyde-Smith expressed her disappointment with the proposed budget cut to the EAS program.
'I was disappointed to see that the administration proposes drastic cuts to the Essential Air Service program. As we have discussed, the EAS program connects our nation's rural communities to the broader transportation network by facilitating safe air travel for customers traveling to and from smaller markets like in Greenville, Mississippi, Tupelo, and Hattiesburg, Mississippi,' Hyde-Smith told Duffy. 'I know you understand the importance of this program from your time as a congressman when you had multiple EAS-supported airports in your district. Drastically cutting this program will have a severe impact on EAS-supported rural communities and regions that rely on having access to the broader transportation network.'
Hyde-Smith added that businesses rarely locate in areas without dependable commercial air service.
'Supporting these rural airports is vital for future economic development,' the senator said.
