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Lufthansa may park Airbus A380s as coronavirus impact worsens
Edward Russell
Contributor
Edward Russell is a contributor for TPG. An AvGeek at heart, he covered the airline business at FlightGlobal for eight years and previously covered finance in New York and Hong Kong.
March 06, 2020
•
3 min read
Lufthansa may park Airbus A380s as coronavirus impact worsens
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Lufthansa may park its fleet of Airbus A380s in what would be a superjumbo symbol of how badly fears of the COVID-19 coronavirus outbreak are hitting travel demand.
The Star Alliance carrier is "examining" temporarily removing its 14 A380s from service if the demand environment continues to worsen, Lufthansa said Friday. The move would come as the airline and its sister carriers — Austrian Airlines, Brussels Airlines, Eurowings and Swiss International Air Lines — plan to slash global capacity in half in the coming weeks.
Lufthansa called the slump in demand around fears of COVID-19 "exceptional circumstances" and said the capacity cuts aim to "reduce the financial consequences."
The airline has not said what destinations and routes will be impacted by the planned cuts.
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Lufthansa is not the first airline to say it may park jets in response to the COVID-19 virus. Delta Air Lines has indicated that it could retire its fleet of McDonnell Douglas MD-88s and MD-90s up to two years early in response to weakening travel demand.
Airlines like Cathay Pacific Airways, whose Hong Kong hub is near the epicenter of the outbreak, has already parked dozens of wide-body jets amid broad cuts to its global schedule.
Related: Coronavirus flight waivers and changes
Lufthansa flies the A380 from its hubs in Frankfurt (FRA) and Munich (MUC). Prior to the spread of COVID-19 to Europe in late February, the airline flew the jets to Los Angeles (LAX), Miami (MIA) and San Francisco (SFO) plus four more cities around the world, according to Cirium schedule data.
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The impact on bookings from COVID-19 in the U.S. is just beginning to take its toll, airline executives at the U.S. Chamber of Commerce Aviation Summit on Thursday sad. At least two senior airline leaders likened the drop in bookings to what they saw after the 9/11 attacks in 2001.
"This isn't economic in that people who want to travel can't," said Southwest Airlines CEO Gary Kelly at the summit. "We could discount prices and it wouldn't do any good."
Related: US airline execs warn coronavirus impact 'could be worse than 9/11' downturn
JetBlue Airways and United Airlines have already trimmed domestic schedules. The CEOs of both Alaska Airlines and Southwest have warned that they may make cuts if bookings continue to plummet.
"We expect all airlines to make meaningful adjustments to their network given what is happening to demand," wrote Cowen aviation analyst Helane Becker in a report Friday. On top of parking older aircraft, she expects flight numbers to be trimmed and planned international seasonal routes to be cut.
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Best for dining at restaurants
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Go to reviewCard Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
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. |
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$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.Pros
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- 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.
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- $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.