United Airlines scales back August schedule on resurgent coronavirus, travel restrictions
United Airlines is scaling back plans to fly 25,000 flights in August as the coronavirus pandemic continues to spread across the U.S.
The Chicago-based carrier now plans to fly about 35% of the what it flew a year ago in August, United disclosed in a securities filing on Tuesday. This is down five-points from the plan unveiled on July 1 to fly 40% of what it flew a year ago.
United cited the rise in COVID-19 cases across the U.S. and new travel restrictions for the roll back of its planned schedule. The cuts were first reported by Reuters.
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Asked about the rising number of infections and new travel restrictions during a media briefing on July 1, United's vice president of domestic network planning Ankit Gupta called the situation part of the "ebb and flow" of the coronavirus pandemic.
“We are being extremely flexible in being able to move our capacity around," he said indicating that the airline could adjust its plans if necessary.
United's decision to scale back its August plans is not a surprise. The U.S. has set new daily records for COVID-19 infections since June, especially in states in the South and West that reopened quickly from their initial coronavirus closures. Delta Air Lines CEO Ed Bastian acknowledged this in an employee town hall on June 25 where he said the carrier could trim its own August schedule.
Related: Delta likely to pull flights as number of US coronavirus cases rises
One place where United may downsize its August plans is Newark (EWR). In a presentation on July 6, the airline indicated that net bookings for travel originating or ending at the airport were down 84% year-over-year, or 11 points lower than for travel elsewhere. The drop is attributed to the mandatory 14-day quarantine in Connecticut, New Jersey and New York for travelers coming from states with rising coronavirus infections.
More Newark flights were a highlight of United's August ambitions. The carrier planned to double the number of peak day departures to roughly 200, including resuming flights to places ranging from Bozeman (BZN) to Orange Country (SNA) and Syracuse (SYR).
Those route additions from Newark are now in question though United has not indicated where it will scale back on planned flights.
Related: United doubles Newark flights, adds 9 long-haul international routes in August
United executives also indicated that the airline may hold capacity at August levels through the end of year, according to the filing. This is in line with warnings from Wall Street who have said the recovery in some leisure travel this summer is unlikely to continue into the fall when business travel typically picks up.
Most corporate flyers remain grounded as companies hold off on travel during the pandemic.
“With COVID and other airlines’ expansion, I’m pretty bearish on the fall,” Sun Country Airlines CEO Jude Bricker told TPG as part of the CEO chat series this week. "September is going to be rough."
Related: Sun Country fears a ‘rough’ September as travel uptick plateaus
Separately, United plans to begin sending notifications to staff of possible furloughs or layoffs this month. The notices, required under the federal Worker Adjustment and Retraining Notification Act or WARN Act, are a prelude to a cull in the airline's workforce in October.
Delta has sent similar notices to more than 2,500 pilots, and American Airlines is expected to send them to as many as 8,000 flight attendants. Airlines cannot let go of staff until after employment protections under the federal government's coronavirus aid package, or CARES Act, sunset on Sept. 30.
Wall Street analysts have repeatedly warned that the pandemic will force airlines to shrink their workforces. Cowen has estimated that as many as 100,000 staff could lose their jobs because of the coronavirus.
Related: United undeterred in August expansion by rising US coronavirus infections, EU ban
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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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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
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
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.