Delta speeds up LAX, Salt Lake City renovation projects during pandemic
Delta Air Lines is not sitting on its laurels waiting for travelers to fly again as the coronavirus pandemic wanes. Instead, the airline has streamlined its fleet and is working with airports in Los Angeles, New York and Salt Lake City to open major terminal projects ahead of schedule.
Works at Los Angeles (LAX) and Salt Lake City (SLC) airports could open as much as two years early thanks to the expected long-term drop in passenger numbers, Delta president Glen Hauenstein told staff in a May 20 virtual town hall that was viewed by TPG. The airline is also working on "innovative solutions" to accelerate the redevelopment of Terminals C and D at New York LaGuardia (LGA).
Completing any of the three projects early would benefit both flyers and the airline. Customers can look forward to refreshed, expanded spaces like in the new concourse Delta opened at LaGuardia in October. At the same time, shorter construction schedules will save the carrier millions of dollars at a time when every cent counts.
“With the drop in demand, we see an opportunity to lower the overall [airport] construction costs and deliver it sooner than planned," Delta chief financial officer Paul Jacobson told investors at a Wolfe Research Conference on May 19.
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LOS ANGELES
Delta is in the midst of a $1.9 billion rebuild of Terminals 2 and 3 at LAX. The project will create a single unified terminal, dubbed the "Sky Way," with two concourses connected inside security as well as to the adjacent Tom Bradley International Terminal.
Delta aims to finish the project by late 2022 or early 2023 thanks to the drop in travel, said Hauenstein. The original project timeline called for work to be complete by 2024.
Heath Montgomery, a spokesperson for LAX operator Los Angeles World Airports, told TPG that they are in discussions with Delta on accelerating the Terminals 2 and 3 work but that there is no agreement yet.
Aside from Delta's work, a major overhaul of many of the passenger facilities at LAX is underway. American Airlines is upgrading Terminals 4 and 5, Southwest Airlines is connecting Terminals 1 and 2, and the airport itself is putting the finishing touches on a new Midfield Satellite Concourse. A new automated people mover that will connect the terminals with the Los Angeles Metro light rail is also under construction.
Related: Delta sending Airbus A350s to Los Angeles, will close Cincinnati pilot base
SALT LAKE CITY
Salt Lake City is rebuilding its complex of multiple terminals and concourses that dates to 1960. The new facility, dubbed "The New SLC," will consolidate airlines into a single terminal with two concourses, similar to the layout of Delta's McNamara Terminal in Detroit (DTW).
The first phase of the work is due to open this fall with the second phase scheduled to come online by 2024. Based on Hauenstein's comments, the second phase of work could wrap as early as 2022.
Nancy Volmer, a spokesperson for the Salt Lake City airport, told TPG that the airport has accelerated work on phase two. The airport can proceed with demolition of two concourses unneeded amid the COVID-19 drop in air traffic and begin construction of the new facility early.
Salt Lake City was Delta's fourth-largest hub by passenger numbers in 2019, according to U.S. Bureau of Transportation Statistics data via Cirium. Delta considers it one of its four "core" hubs that also include Atlanta, Detroit and Minneapolis/St. Paul (MSP).
Related: What to expect when flying into the US during the coronavirus pandemic
NEW YORK LAGUARDIA
The $3.9 billion upgrade at LaGuardia airport is the single costliest airport project in Delta's history. As originally laid out, the work includes a careful choreographed dance of construction and demolition over nine years — or by 2026 — to minimize any impact to travelers and keep the airline's flights moving.
“We’re working on innovative solutions for LaGuardia," Hauenstein told staff without providing specifics. "We’ll take a significant amount of time and bring some of the customer-facing improvements earlier in the process.”
As in Los Angeles and Salt Lake City, Delta could accelerate the demolition of some of its concourses at LaGuardia to begin construction sooner. However, rules that govern slot usage at the airport could hamper its efforts to reduce flights over an extended period. Those rules have been temporarily suspended through May 31.
Related: Is construction at LaGuardia getting faster or slower?
Delta cut departures from LaGuardia to as few as 15 a day in April during the depths of the pandemic. Some flights have since returned with nonstop connections to major cities that are not also among the airline's hubs due to begin returning in June and July, said Hauenstein.
The carrier has consolidated its New York-area operations at New York John F. Kennedy (JFK), LaGuardia and Newark Liberty (EWR) airports. It has suspended flights to outlying Newburgh Stewart (SWF) and White Plains (HPN) through at least September.
Delta was the largest at LaGuardia carrying 41% of airport passengers in 2019, BTS data via Cirium shows.
Related: Delta’s new concourse is a tantalizing preview of the LaGuardia renovation
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New York LaGuardia new Concourse G (opens 2019), by Corgan. ???? @zlwichter. #airportarchitecture
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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
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- 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.
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- $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.
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- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 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. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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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
$325Recommended 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. (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.