United Airlines will return Boeing 787s to LAX even as it plans for a skeletal autumn schedule
United Airlines may be among the more conservative U.S. carriers, flying a greatly reduced schedule during the coronavirus pandemic, but it has not lost its competitive edge.
The Chicago-based carrier has reversed plans to close its Boeing 787 pilot base in Los Angeles (LAX) citing a "changing competitive environment," United told pilots in a crew resources update on Friday viewed by TPG. Crews will initially staff the reinstated flight between Los Angeles and Sydney (SYD) that United begins in September.
The decision also comes just 10 days after American Airlines, the largest carrier at LAX, revealed that it will end most long-haul flying from the airport. Gone are flights to Beijing, Buenos Aires (EZE), Hong Kong (HKG), São Paulo (GRU) and Shanghai Pudong (PVG) -- the last pending government approval -- leaving just Auckland (AKL), London Heathrow (LHR) and Sydney to resume after the pandemic.
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United's seemingly about face on 787s in Los Angeles is more a signal of what the new normal is at airlines: flexibility. If air travel demand does not fit the schedule? Cut flights, and not 90 days early as before the crisis but less than 30 days before departure.
The same goes to staffing. Even with warnings of possible furloughs going to some 2,500 pilots on July 8, United's crew resources update shows it is willing to change its plans quickly and adeptly in response to the market.
United still faces a tough road ahead. The airline is among those more exposed to the slowdown in business and international travel, neither of which have returned in significant numbers. The stalling recovery has, to date, been led by U.S. domestic leisure flyers.
Related: United Airlines sees Boeing 787 as new long-haul ‘workhorse'
The return of leisure travelers first has been an outsized benefit to low-cost carriers, like Frontier Airlines and Spirit Airlines. American has also benefitted as the major carrier with the largest domestic schedule.
In July, American plans to fly domestically around 55% of what it flew last year, according to Cirium schedules. This compares to just 30% at United, 40% at Delta Air Lines or even 90% at Spirit.
But the crisis is getting worse again before it gets better. United CEO Scott Kirby told staff in a video message on July 8 viewed by TPG that the carrier expects its scheduled will be down roughly 60% year-over-year on Oct.1 -- or about 2,000 daily flights based on its Oct. 2019 schedule.
Related: Air travel recovery will come slower than expected
The outlook followed industrywide recognition that the return of travelers is stalling as COVID-19 cases rise in many parts of the country. At the same time, travel restrictions are limiting visitors in many places.
“We’ve actually seen demand go [down], and revenue remains down over 80%," Kirby said. "What that means is our August schedule is likely going to be the peak of our schedule and we’re not going to be able to grow it in September and October.”
United has already pared its August schedule plans. The carrier will fly about 35% of what it flew a year ago during the month, rather than initial plans to fly 40%.
One notable fleet addition mentioned in the crew update: the Boeing 757 will return to United's domestic schedule. The jets, which do not include the airline's premium 757-200s, join Boeing 767-300ERs in the airline's operations.
Related: United Airlines scales back August schedule on resurgent coronavirus, travel restrictions
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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.
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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
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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.