Southwest Airlines, the biggest carrier in Las Vegas, has just won the bid for a spot at one of the new terminals at Ronald Reagan airport near Arlington, Virginia. The carrier will now offer daily flights from Washington DC to Las Vegas, just in time for the increased demand for non-stop flights to and from Las Vegas.

Southwest Airlines, already the largest carrier in Las Vegas, is set to expand its operations further after securing one of the highly sought-after terminal slots offered at Ronald Reagan Washington National Airport in Arlington, Virginia. The new slot, awarded by the US Department of Transportation, will allow Southwest to commence daily long-haul service between Harry Reid International Airport and Washington, DC, before the year's end.

This development marks an exciting chapter for both the airline and the rapidly growing Southern Nevada region, which continues to see a surge in air travel demand following the pandemic.

Expanding operations

Southwest Airlines won one of the five newly created long-distance flight slots at Reagan National Airport under the Federal Aviation Administration's Modernization and Reauthorization Act of 2024. This act, signed into law by President Joe Biden last May, increases the number of daily flights at Reagan traveling more than 1,250 miles from 40 to 45. These long-haul slots are particularly valuable given Reagan's location near the nation's capital and its proximity to the highly populated Northern Virginia area.

Reagan National, with limited real estate and a high volume of short-haul flights, is a coveted airport for airlines. Its slots are in constant demand due to its popularity with DC residents and nearby communities, who prefer its convenience over the larger, more distant Washington Dulles International Airport.

Southwest's success in securing the Reagan slot followed a competitive bidding process in which eight airlines also submitted proposals. The Department of Transportation ultimately awarded Southwest one of the prized long-haul slots, in part due to the airline's commitment to meet growing demand for nonstop service between Washington and Las Vegas.

Soaring demand for Las Vegas travel

Las Vegas has seen its air travel demand skyrocket over the past decade. Harry Reid International Airport recorded a record-breaking 57.6 million passengers in 2023, a dramatic increase from 41.8 million passengers in 2013. Southern Nevada's appeal as a tax-friendly, low-cost-of-living environment has attracted many new residents, especially from neighboring California, contributing to the increase in air traffic.

In its bid for the Reagan slot, Southwest Airlines highlighted the growing demand for flights to Las Vegas from the DC area. The airline noted that demand for Las Vegas routes from Reagan surged by 28% from 2019 to 2023, far outpacing the overall demand for other long-haul routes from the airport, which showed only a -0.1% adjustment during the same period.

Southwest's focus on this growing demand resonated with federal regulators, who were tasked with determining which airlines would benefit from the new slots. In announcing the allocation, Southwest President and Chief Executive Officer Bob Jordan expressed his optimism about the airline's new route.

"Southwest has a long history of connecting people across the nation with important moments in their lives through competitive airfares, friendly and flexible policies, and the unmatched hospitality of our people," Jordan said. "We believe Southwest's new DCA-LAS nonstop service will lower fares and increase access for the nation's capital, Las Vegas, and western states."

A booming market

Despite Las Vegas' growing air travel demand, Reagan National had only one existing direct service to the city, operated by American Airlines. Southwest's entry into this route is expected to create more competition, potentially lowering fares and offering travelers more flexible options.

Reagan National is known for its ability to command higher ticket prices due to its prime location and high demand. Southwest's move to introduce more competition on the Las Vegas route could significantly benefit travelers who frequent both cities, especially as Las Vegas continues to see record-breaking visitor numbers.

DC's local casino scene

While Washington Metro area residents now have easier access to Las Vegas thanks to Southwest's expanded service, they don't necessarily need to travel across the country to experience casino gaming. The nearby MGM National Harbor, located a mile from the Potomac River in Maryland, is one of the top-performing casinos in the US outside Las Vegas. In 2023, the property generated $834 million in gross gaming revenue from its more than 120 table games and 2,200 slot machines.