Major airline comeback? New push underway to expand flights at Stewart Airport
A new public-private fund could help lure major carriers back as officials confirm talks are already underway.
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A new effort is underway to bring more flights and major airlines back to New York Stewart International Airport after years of declining passenger traffic and the loss of several major carriers.
The Hudson Valley Economic Development Corporation is working to establish a public-private “minimum revenue guarantee” fund designed to make adding service at Stewart, which is owned by the Port Authority of New York and New Jersey, less risky for airlines.
Here’s how it would work: If a new route fails to generate an agreed-upon minimum amount of revenue, the airline could draw money from the fund to make up the difference. When revenue exceeds that threshold, money could be returned to the fund.
“The fund would essentially provide an insurance policy to an airline,” state Sen. James Skoufis said.
Skoufis says his office is working to secure $500,000 in state funding for the effort through next year’s state budget. He also told News 12 that discussions are already underway with a major airline about offering flights from Stewart to at least one of its major hubs. Such a route could give Hudson Valley travelers access to destinations across the country with just one connection.
Skoufis said an agreement with a carrier could potentially be reached within the coming months, although launching service would take longer — possibly up to a year.
The push comes as Stewart continues to operate with significantly fewer passengers and airline options than during previous peaks. The airport handled nearly 291,000 passengers in 2025, compared with roughly 690,000 in 2018 and more than 913,000 at its 2007 peak. Several major carriers have pulled out along the way. JetBlue, American and Delta no longer serve Stewart, while international carrier PLAY ended its service last year. Stewart currently has scheduled passenger service from Allegiant and Breeze, primarily to leisure destinations.
Stewart isn’t alone. Smaller airports around New York and across the country have struggled to restore air service following the pandemic as airlines consolidated flights and became more cautious about adding routes.
A 2026 report from the U.S. Government Accountability Office found average daily departures per route at nonhub airports remained 19% below 2018 levels in 2024. More than 70% of nonhub airports that did not receive federal Essential Air Service subsidies had fewer departures than they did before the pandemic.
Skoufis says those post-COVID changes are part of the reason communities are increasingly looking at incentives like minimum revenue guarantees to convince airlines to take a chance on new service. Orange County Executive Steve Neuhaus told News 12 the county supports efforts to attract meaningful new service and is willing to participate in discussions about incentives.
Neuhaus said the initiative originated with the Hudson Valley Economic Development Corporation and could involve Orange County, New York state and the Port Authority of New York and New Jersey, which operates the airport.
He said potential incentives could take several forms, including assistance with advertising or fuel costs.
“I always keep the door open, and if there is a major airline that can make a difference for economic development in Orange County and the Hudson Valley, I definitely would get behind that,” Neuhaus said.
Neuhaus added that he believes New York state and the Port Authority should bear primary responsibility for supporting the airport.
People who live near Stewart told News 12 they would welcome more options.
“I think it’s wonderful. We have an airport close by. We need more airlines in there,” said Yvonne Maldonado, who has lived in the area for 10 years.
Maldonado said she would like to see flights added to destinations including Washington, D.C., and Puerto Rico and called the proposed fund “a good start.”
Mary Gurnee, who has lived near Stewart for 40 years, agreed.
“I think it’s good. It would be nice if we could fly out of there,” Gurnee said.
Skoufis says the goal is not simply to add another vacation destination, but to secure service to a major airline hub that could dramatically expand the number of places Hudson Valley passengers can reach from Stewart.
News 12 has reached out to the Port Authority of New York and New Jersey for comment.
