American hub, discounter growth push Philadelphia airport toward record year
Philadelphia is home to the Liberty Bell, Geno's and Pat's, and American Airlines' fourth largest hub and main European — and soon African — gateway.
The Philadelphia International Airport (PHL) is on track to serve a record 33 million passengers in 2019, buoyed by American's expansion and the growth of ultra-low-cost carriers like Frontier Airlines and Spirit Airlines. Airport CEO Chellie Cameron, with all indicators pointing upwards, is understandably optimistic for the future.
“If we hit 33 [million passengers], you’re going to see me jumping up and down," Cameron said expressing her excitement at a media event at the airport on Tuesday.
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The airport's capacity (as measured by seats) jumped in 2019. Discounters grew the fastest with seats up 35% year-over-year at Spirit and 26% at Frontier, according to Cirium schedules. American saw seats decline by 1.1% year-over-year but only because of the Boeing 737 MAX grounding, according to the airline's vice president of PHL hub operations Jim Moses.
At the same time, Philadelphia has invested in local amenities — like an outlet of the well-known cheesesteak outlet Geno's Steaks — and upgrading its terminals to serve the growing ranks of travelers passing through its halls. That said, the airport is a modern hub with a certain grit thrown in that is uniquely Philadelphia.
Philadelphia airport's growth, both in passengers and amenities, comes after a period of uncertainty following the American-US Airways merger in 2013. It was unclear how exactly the hub fit into American's cluster of hubs along the Northeast Corridor, especially as the airline cut seats at the airport by nearly 15% from 2014 through 2017, Cirium data shows.
American began adding those seats back at the hub in 2018 when its post-merger network strategy crystallized. Philadelphia became its transatlantic connecting gateway with New York John F. Kennedy (JFK) and Washington Reagan National (DCA) local-traffic focused hubs.
'Crown Jewel'
Philadelphia, known by some in American's executive ranks as a "crown jewel" in its network, is a strong gateway for the airline. Over the past two years, the carrier has proven it can successfully test new European markets — ranging from Berlin (TXL) and Dubrovnik (DBV) to Prague (PRG) — on a seasonal basis to see if there's a case to return with more robust service in the next schedule.
American will test its first-ever service to Africa from Philadelphia come June, when it begins thrice-weekly seasonal flights to Casablanca (CMN).
“We have a great connecting hub here," Moses told TPG. "What we can do in Philadelphia, we can’t do at a lot of other Northeast airports.”
Related: American: Philadelphia hub lets us do things rivals can’t
Moses' comments echoed those of American vice president of network and schedule planning Vasu Raja who said in August that "none of our competitors’ operations in New York or the Northeast can... do anything really remotely close" to what they can do in Philadelphia.
This is not to say American does not face challenges in the City of Brotherly Love. The airline's hub is spread over five concourses that span the full length of Philadelphia airport's seven-concourse terminal complex. Even with five concourses, the facility brims with people during peak periods, requiring people movers akin to those at Washington Dulles International Airport (IAD) to help accommodate the rush during the summer.
“During certain times of the year, the airspace becomes saturated and then you throw in some irregular operations that does create challenges," Moses said, adding more about the challenges the hub faces. "But as hub operations go, this one works quite well."
Further upgrades are coming this year. American began its first regular flights on a Boeing 787 at Philadelphia on Tuesday, and plans to open a Flagship Lounge in Terminal A by the end of summer.
Philadelphia's next move
With traffic growing and a seemingly happy hub carrier, Philadelphia airport appears on solid footing. A Moody's Investors Service report in November found that, despite a likely rise in operating costs in the coming years, the airport was competitive compared to regional rivals and benefited from a large catchment area with "sufficient demand to support an international hub."
More growth is coming. American is set to retire its Embraer E190 fleet, which is primarily based in Philadelphia, by year-end. It will shift many of its E190-operated flights to Airbus A319s outfitted with 128 seats — 29 more than the E-Jets. In addition, Spirit will begin new service to Cancun (CUN) and expand service to San Juan (SJU) in March.
Related: Spirit Airlines adds Philadelphia connection amid Cancun expansion
"PHL has proven it can be a successful starting off point for boutique destinations and global business," Cameron told TPG. "We are ready to further our reach.
Even with a robust network of nonstop routes covering the U.S. and much of Europe, the airport continues to look to fill in gaps, she added, pointing to Asia and South America as examples.
"Philadelphia has grown up," Campbell-Hill vice president Howard Mann, who advises Philadelphia on landing new air routes, told TPG. "They're not trying to outdo Newark or JFK, [but] they make sure that Greater Philadelphia residents have the opportunity to fly out Philadelphia.”
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- 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. |
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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
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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.