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US airlines see cancellations rise amid COVID warnings against Thanksgiving travel

Nov. 20, 2020
3 min read
US-TRANSPORT-AMERICAN-AIRLINES
US airlines see cancellations rise amid COVID warnings against Thanksgiving travel
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Thanksgiving is shaping up to be its usual busy travel period amid the slow days of November and early December, even with the coronavirus pandemic raging.

But busy in 2020 is not the same as busy in 2019. The Transportation Security Administration (TSA) anticipates screening more than 6 million travelers over the Thanksgiving week, according to CBS News. While a far cry from the more than 26 million screened a year ago, that would still generate some of the busiest air travel days for the country since COVID-19 hit.

Dampening the traditional familial mood is a new Centers for Disease Control and Prevention (CDC) recommendation that "postponing travel and staying home is the best way to protect yourself and others" from the coronavirus. The warning comes as the seven-day moving average for new infections hit 164,495 people on Nov. 18, a new high in the U.S.

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Alaska Airlines, American Airlines, Southwest Airlines and United Airlines have all seen the rising case counts hit bookings and, at least for some, increase cancellations.

"We've seen a dampening of demand. It really is too soon to tell how deep and how long," American president Robert Isom said at the Skift Aviation Forum on Nov. 19. His recommendation for Thanksgiving travelers was to follow CDC guidance -- though he did not acknowledge the public health organization's stay-at-home advice.

That same day in an investor update, United attributed a "deceleration in system bookings and an uptick in cancellations" directly to the spike in new COVID cases.

Related: Airlines brace for busy Thanksgiving, urge travelers to fly even as COVID surges across US

It is unclear how much the slowdown in bookings will affect Thanksgiving. While U.S. airlines allow travelers to cancel or change flights without fees, there are questions about how many Americans will cancel their plans with the holiday week already here.

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"It is a cautionary note with the COVID cases rising once again," said Southwest CEO Gary Kelly at the forum. "It's certainly possible we're seeing an impact from that -- we just don't know."

Southwest's outlook still forecasts sequential improvements in November and December compared to past months, just at a slower rate than before, Kelly added.

Related: CDC recommends staying home for the holidays — Here's what to do if you may cancel your travel plans

Despite the COVID-19 surge, screenings at TSA checkpoints appear to have begun rising ahead of Thanksgiving. On Thursday (Nov. 19), the number of travelers rose to 907,332 or 37% of a year ago. That's a percentage point higher than the number a week earlier on Nov,. 12

Any uptick in travel will be much welcomed by airlines who continue to lose millions of dollars a day. However, while multiple studies indicate that flying on a plane is safe, the rise could further the spread of the coronavirus around the country with negative ramifications for the industry.

"Seriously, I don't think there's an end in sight until I can line up for that vaccine sometime in the second quarter of next year," Cowen analyst Helane Becker said at the forum.

Related: Southwest Airlines on full-court press to win back biz flyers, one airport tour at a time

Featured image by AFP via Getty Images

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  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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Best for dining at restaurants
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
3XEarn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Intro Offer
    You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit
    Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.