Palm Springs is booming with new flights during the pandemic. But is it sustainable?
The California desert oasis of Palm Springs is known for its golf courses, mid-century modern architecture and infinite time loops.
Now, amid the coronavirus pandemic that has hit the travel industry harder than any past crisis, the city in the Sonoran Desert is seeing a flurry of new flights that makes Palm Springs one of the few places where air service is growing in 2020.
Alaska Airlines, American Airlines, Delta Air Lines, JetBlue Airways and Southwest Airlines have all unveiled new flights to Palm Springs International Airport (PSP) in past months. Of the five carriers, the first four already serve the airport while it will be an entirely new dot for Dallas-based Southwest.
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All this added service could push the number of flights from Palm Springs above 2019 levels — something that would be a remarkable feat given how the coronavirus pandemic has decimated flight schedules elsewhere in the U.S. Domestically, airlines flew half of what they flew a year ago during the week ending Sept. 20, the latest Airlines for America (A4A) data shows.
In October — the latest month for which schedules are currently finalized, but before many of the new routes begin — flights at Palm Springs airport will be down just 14% compared to last year, according to Cirium schedule data. This is markedly better than nationally where airlines plan to fly roughly 45% less than in 2019.
Related: Alaska Airlines adds 3 new Palm Springs routes ahead of JetBlue, Southwest expansion
The growth stands out considering Palm Springs' smaller size. The airport ranked 86th in the U.S. for traveler numbers in 2019, handling just under 2.6 million passengers, according to U.S. Bureau of Transportation Statistics data via Cirium.
Why, then, are all these airlines adding flights to Palm Springs at a time when few Americans are flying? The answer is likely some combination of the desert city's outdoor amenities and a little bit of "wishin' and hopin,'" as chanteuse Dusty Springfield put it in her 1960s hit song.
TPG exclusive Q&A: Southwest CEO Gary Kelly chats about his legacy, new cities and change fees
Why Palm Springs?
Ask Colleen Pace, chief marketing officer of the Greater Palm Springs Convention & Visitors Bureau, and the destination is an "oasis" for "relaxation and rejuvenation." She thinks is especially true during the pandemic, when many people are holed up in need of a break.
"People don’t recognize all that Palm Springs has to offer," she said when asked what is bringing visitors to the Coachella Valley during the pandemic. The region benefits from numerous golf courses, pools and opportunities for outdoor activities like cycling and hiking. In addition, it is adjacent to Joshua Tree National Park.
The outdoors has proved attractive to travelers during the pandemic. Beginning over the summer, airlines have reported higher numbers of flyers to destinations with open space — those with beaches, mountains and national parks — where people can easily socially distance.
Related: Which US airlines are blocking middle seats?
Palm Springs is the latest beneficiary in this outdoor-oriented travel trend. The destination also benefits from pleasant weather during the winter when many Americans are likely to be desperate to — again — flee their homes for warmer climes.
COVID-19 still presents a concern in the desert city. The positivity rate for Riverside County where Palm Springs is located stood at 5.8% on Sept. 22, according to data from the state of California. The rate is considered a "substantial" risk by the state.
“Things are all trending in a positive direction," Pace said, noting that the county was recently downgraded from the higher "widespread" risk category. California considers a positivity rate of 5% to 8% to represent a substantial COVID-19 risk with the "minimal" category being a rate of 2% or lower.
Related: 9 outdoorsy U.S. resorts perfect for a socially distant getaway
Can airlines profit in Palm Springs?
“It’s great to see all these new flights added in because it makes the destination that much more accessible," Atmosphere Research president Henry Harteveldt told TPG. In addition, the new flights will help drive down fares that should stimulate new travel.
The question, of course, is whether airlines will make money from the new flights. Low fares are great for travelers, but they do not always translate into airline profits — especially when the industry is already hemorrhaging cash and asking for additional relief from the federal government.
Profits may not be the end goal though. Earlier in September, Southwest CEO Gary Kelly told TPG that the addition of Palm Springs, as well as Miami (MIA), would broaden its attractiveness to travelers during the pandemic and help it generate needed additional revenue with otherwise idle planes.
Related: Southwest Airlines is using the coronavirus to solidify its dominance in California
"Palm Springs, for example, is the largest California city that we do not serve,” Kelly said. “We are the No. 1 airline in California by every measure. So here it’s an opportunity for us to plug it in [to our network].”
While Southwest appears likely to stick around after the pandemic, some of the city's other new routes may prove fleeting. The historic drop in travel due to COVID-19 has forced airlines to fly routes they would not have attempted prior to the crisis. For example, JetBlue is opening a base in Los Angeles (LAX) and United Airlines is adding nonstop flights to Florida that bypass it hubs.
Most industry watchers view these routes as attempts to capture the few travelers who are flying and generate extra revenue with little guarantee that they will continue after the winter — let alone the pandemic.
Related: JetBlue continues push beyond focus cities, challenges Delta, United with 24 new routes
“In a way, this is the best time to test new destinations and new routes," said Harteveldt. "If you don’t take a risk now, it may be more difficult to do so when things get back to normal and there is pressure to generate [financial] returns.”
For Palm Springs, which routes stick around which may not become apparent until after the winter travel season that ends in March, he added.
That said, the pandemic may prove a turning point for Palm Springs that sees it evolve from a regional destination into more a national holiday destination with nonstop flights to points around the country. Pace said the region is ready for an influx of travelers, with ample hotel and vacation rentals available.
Only time will tell.
Related: Delta adds 5 new routes from LAX, Atlanta as rivals expand in the West
Below is a list of the new routes planned from Palm Springs this winter.
American
- Philadelphia (PHL): seasonal weekly flight on Saturdays on an Airbus A319 from Dec. 19
Alaska
- Boise (BOI): seasonal daily flight on an Embraer E175 from Dec. 17 to April 12, 2021
- Reno (RNO): seasonal flight on Monday, Thursday, Friday, Saturday and Sunday on an E175 from Dec. 17 to April 12, 2021
- San Jose, California (SJC): two daily flights on E175s from Dec. 17
Delta
- Los Angeles: one daily flight on an E175 from Nov. 20
JetBlue
- Fort Lauderdale (FLL): seasonal flight on Thursday and Sunday on an Airbus A320 from Dec. 18 to March 25, 2021
Southwest
- Routes to be determined
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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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- 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.
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- No Foreign Transaction Fees.
- 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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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.