JetBlue, Spirit Airlines say leisure flyers beginning to return — slowly
A few Americans are beginning to travel again for reasons other than essential work during the coronavirus pandemic with JetBlue Airways and Spirit Airlines each reporting a slight uptick in passengers.
Both New York-based JetBlue and South Florida-based Spirit are seeing slight improvements in May passenger numbers, executives reported during separate first-quarter earnings calls on Thursday. While both emphasized the gains were modest, the improvements give hope that a more meaningful recovery is in the offing as concerns of COVID-19 lessen.
"We’re simply finding is people are starting to want to move around a little bit," said Spirit commercial chief Matthew Klein. "As long as they’re traveling in a safe way, we’re starting to see that come back a little bit.”
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The green shoots are a positive sign for an industry hard hit by the pandemic. Airlines have cut the number of domestic flights by more than 73% in response to the near disappearance of demand during the week ending May 5, according to trade group Airlines for America (A4A). Passenger traffic was down nearly 96% year-over-year over the same period.
Most carriers have cut schedules through June, with executives universally saying they do not know when people will want to fly again in large numbers. Surveys show many potential travelers will wait for a broad relaxation in shelter-at-home and other restrictions before they will consider flying.
JetBlue is flying around 100 flights a day, or about 10% of its originally planned schedule, president Joanna Geraghty said Thursday. The airline has not regularly flown that few flights since 2002 — just its second year of operation — according to U.S. Bureau of Transportation Statistics data.
Related: Travelers are nervous about flying again after coronavirus, a new survey finds
“We’re starting to see some very small improvements in bookings but… it’s too early to tell if there’s a change in the trend," said Geraghty. The improvements are primarily on flights between the northeastern U.S. and Florida.
Both JetBlue and Spirit pointed to the "visiting friends and relatives" market — dubbed "VFR" traffic within the industry — as leading the uptick in travel so far.
Spirit is optimistic that more people will begin flying soon. The airline plans to resume some flying in June, walking back a planned 95% year-over-year capacity cut slightly to down just 90% compared to 2019.
"We expect the demand for travel in the summer to rebound a bit but still be significantly below last year," said Klein.
Related: JetBlue and Spirit Airlines can suspend flights to 16 hub airports
These trends fit general expectations that domestic leisure travel will return before business or international travel. This benefits leisure-oriented airlines like JetBlue and Spirit, but poses challenges for carriers like American Airlines, Delta Air Lines and United Airlines that depend more on higher-fare business travelers.
The so-called "big 3" of the U.S. have all cut schedules dramatically through June, with United planning to operate just 10% of the capacity it flew a year ago.
The modest uptick in May passenger numbers comes as airlines continue to wrack up first quarter losses. Net losses at JetBlue totaled $268 million and at Spirit $28 million during the three months ending in March.
Related: Airlines flew empty flights to get coronavirus aid; now they’re asking Congress for help
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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.
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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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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
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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.