Delta Air Lines 'committed' to new Boston hub; Austin, Raleigh focus cities
Delta Air Lines is committed to returning to its coastal hubs and many of its focus cities as it begins what is expected to be a multi-year rebuilding of the airline's route map.
The Atlanta-based carrier will return to its hubs in Boston (BOS) — its newest hub — Los Angeles (LAX), New York John F. Kennedy (JFK) and LaGuardia (LGA), and Seattle (SEA) as it resumes flying, Delta CEO Ed Bastian told staff at a virtual town hall on Wednesday that was viewed by TPG. Delta is also committed to returning to its Austin (AUS) and Raleigh-Durham (RDU) focus cities.
"We’re committed to New York, we’re committed to Boston, we’re committed to LA, Seattle, Austin [and] Raleigh," he said. "All the places we’ve made big investments in, we’re coming back."
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Bastian's comments came after he told staff that Delta only plans to fly about half of what it flew in the U.S. domestic market at the end of 2019 by the end of this year. The resumption in international flying is likely to be about a year behind that, he added.
A halved Delta would fly around 72,600 domestic flights in December, based on 2019 numbers, according to Cirium schedule data. That's about double the nearly 38,800 flights it has scheduled in June when it only plans to fly about a quarter of what it flew last year.
There is a lot of uncertainty in the forecasts for this fall and winter. While leisure travelers are returning in notable numbers this summer, business travel has not returned in any meaningful way. Holiday travel traditionally slows down after Labor Day, potentially leaving a big gap in the market if corporate flying does not pick up.
Related: Airlines may face a tough fall after that summer uptick
“It really is [that] there is just so much unknown," Raymond James analyst Savanthi Syth told TPG this week. "Airlines are putting the cash cushion in and hoping for the best.”
Delta has already begun building back its core hubs in Atlanta (ATL), Detroit (DTW), Minneapolis/St. Paul (MSP) and Salt Lake City (SLC). These bases allow the airline to provide travelers with connectivity across its network — even with numerous cities suspended — regardless of where they are coming from or going to.
The carrier's coastal hubs and focus cities have been slower to return, largely due to less local demand for air travel, Bastian told staff. However, as demand returns these bases will return as well.
Related: Delta sending Airbus A350s to Los Angeles, will close Cincinnati pilot base
Delta's focus cities in Cincinnati (CVG), Nashville (BNA) and San Jose, California (SJC), were absent from Bastian's remarks. While Nashville and San Jose are among its newest and least-developed bases, the exclusion of Cincinnati may hint at what many have long expected: that Delta plans to downsize the former hub to just a point on its map.
The airline has already said it will close its Cincinnati pilot base by the end of the year. In addition, it is considering closing its cabin crew base at the airport as well.
Cincinnati was among Delta's earliest hubs when the airline created it in 1981. The operation has shrunk since peaking in 2005, a shift that was accelerated by the addition of relatively nearby Detroit as a hub following the airline's merger with Northwest Airlines in 2008.
Related: Delta Air Lines will shrink its European footprint, may close crew bases after coronavirus
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| 4X | 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. |
| 4X | 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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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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. (Partner offer)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.