Delta plans to add 'key spokes' from Miami with LATAM tie-up
Do not expect Delta Air Lines to plop down a major new hub in South Florida and challenge American Airlines in the de facto gateway to Latin America any time soon.
But Atlanta-based Delta does plan to add some "key spokes" in Miami (MIA), though not a large hub, to support its new partner LATAM Airlines that it wooed away from American last month, said Delta president Glen Hauenstein during its third quarter earnings call on Thursday.
“We’re not creating a new hub, we’re not creating a giant connecting complex — we’re making selective adds," he said.
Related: Delta eyes Miami build-up under LATAM partnership
Miami is LATAM's largest U.S. gateway with up to 11 daily flights to 10 South American cities, including Buenos Aires (EZE), Lima (LIM) and Santiago (SCL) in Chile, according to Diio by Cirium schedules. Delta serves the airport from its hubs in Atlanta (ATL), Detroit (DTW), New York John F. Kennedy (JFK), Minneapolis/St. Paul (MSP) and New York LaGuardia (LGA), as well as from Havana (HAV) in Cuba.
Delta is due to add service between Miami and its Boston Logan (BOS) hub in December.
For comparison, American serves 54 cities in the U.S. from Miami, Diio schedules show.
There are only a few incremental routes that Delta may add to support LATAM in Miami after their planned codeshare kicks in by the end of the year, said Hauenstein. That may change once the airlines implement their planned joint venture, he added, but that tie-up is likely two years away.
Related: LATAM will remain unaligned after Delta tie-up, Oneworld exit
Hauenstein declined to provide any more details on Delta might go from Miami beyond his comment on "key spokes," when asked by analysts and reporters.
New York and Atlanta — both already served by Delta — were the largest domestic markets for travelers originating in Miami in the second quarter, according to U.S. Department of Transportation data via Diio. Other top 10 markets include Chicago O'Hare (ORD), Los Angeles (LAX) and Washington National (DCA).
Missing from the Miami traffic data, however, is where LATAM passengers —largely South Americans traveling to the U.S. — want to go. For example, Orlando (MCO) is a well-known popular destination for Brazilians, and one that American serves seven times daily from Miami.
For those wanting a flight map of Delta's plans in Miami, Hauenstein said the airline's growth will be incremental and similar to what it has done in Dallas/Fort Worth (DFW) and Denver (DEN). The carrier has grown capacity by double-digits at both DFW and DEN since 2014, according to Diio. Most of that, though, is from added frequencies and shifting flights to larger aircraft, and not necessarily from new routes.
Miami, no matter where Delta goes, is set to become a "war zone" between entrenched American, Delta and LATAM, wrote Brett Snyder on the Cranky Flier blog earlier this month. American, for its part, has already announced additional flights on existing routes to three key LATAM markets: Lima (LIM), Santiago, and São Paulo Guarulhos (GRU).
A larger Delta in Miami is a bit of a throwback to its never-realized partnership with Pan Am in 1991. After Delta purchased the latter's European routes, the two agreed to partner to Latin America with Pan Am continuing to operate flights from Miami. The partnership never went through due to Pan Am's dire financial situation, and the iconic brand joined the airline graveyard shortly after.
Delta has early expectations of 3-4% year-over-year capacity growth in 2020, with executives saying today they will unveil their plans at a December investor day. The airline anticipates a roughly 4% year-over-year increase this year.
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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 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.
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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.