Orange County backs airline route fund to boost Stewart service

Orange County is trying to change the odds at Stewart International Airport by promising airlines a financial backstop if new routes do not fill fast enough. The minimum revenue guarantee would cover early losses during the first 18 to 24 months, a public-private bet that shifts some of the launch risk away from carriers and onto the fund assembled to support them.

That matters because Stewart has spent years waiting for a sustained airline comeback. FAA rules prevent airport owners from directly paying airlines, so the guarantee has to be administered by an outside group. In this case, the Hudson Valley Economic Development Corporation has been working with the county, state Sen. James Skoufis and the Port Authority of New York and New Jersey to build the program.

The logic is simple: make it easier for a major airline to test the Hudson Valley market without fearing that a slow start will kill the route before it can build a customer base. If the strategy works, Orange County could gain more flight choices, more competition and, eventually, lower fares for travelers who now drive to larger airports farther away. Local officials also see a broader payoff for employers, tourists and the region’s business economy, especially in Newburgh, Middletown and New Windsor.

Stewart’s history helps explain why leaders are turning to a guarantee instead of simply hoping airlines stay. Commercial service at the airport began in April 1990, but the airport has repeatedly lost carriers over time because of 9/11, the pandemic, airline consolidations and the failures of airlines such as Midway, Independence Air and PLAY Airlines. PLAY’s departure left Stewart’s international arrivals and customs facility unused, even though the project cost about $37 million.

The airport’s current airline base is still thin. Only Allegiant Air and Breeze Airways fly Stewart now, with service centered on Florida and a few other Southern destinations. Breeze added twice-weekly year-round service between Stewart and Raleigh-Durham International Airport on May 6, 2026, giving passengers access to more than 30 onward destinations. Breeze also serves Charleston, Orlando and Fort Myers from Stewart, while Allegiant flies to Fort Lauderdale, Orlando-Sanford, Punta Gorda, St. Petersburg and Myrtle Beach.

The urgency is clear in the passenger numbers. Stewart has not topped 300,000 passengers in a calendar year since before the pandemic, and 2018 was its busiest year in the last decade, when five airlines served the airport: American Airlines, Delta Air Lines, JetBlue, Allegiant and Norwegian Air Shuttle. With monthly traffic data now being released through the Port Authority’s Airport Traffic Dashboard, county leaders can track whether the new money-on-the-line approach finally turns Stewart into a lasting gateway rather than another short-lived subsidy pitch.