With planes flying empty, government allows airlines to drop more cities
Like to spread out in Spirit Airlines’ Big Front Seat? Travelers should find lots of them empty and available -- for a fee, mind you -- on the budget carrier’s flights this month. On some of Spirit’s routes, like those originating in Asheville, for example, an average of just six people are booked on each flight.
At Spirit and most other U.S. airlines, empty planes are flying across the nation everyday due to minimum flight schedule requirements in the federal government's coronavirus aid package, known as the CARES Act. After weeks of complaints by airlines who took funds, including multiple official requests for relief, the Department of Transportation is finally easing up, if just a little, on the rules.
“We shouldn’t be flying airplanes that are empty," trade group Airlines for America (A4A) president and CEO Nicholas Calio told U.S. senators at a hearing on May 6. The government has now heeded his call.
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The DOT is allowing carriers to suspend flights to 5% of the U.S. destinations on their maps, or up to 11 cities at the largest carriers — American Airlines, Delta Air Lines and United Airlines. The move is aimed at providing some additional financial relief to airlines that are losing millions of dollars a day with little hope that travelers will return in significant numbers for the foreseeable future.
No city will lose air service under the DOT's new guidance. The regulator will ultimately have to approve every airline's suspension requests. In doing so, the department said it will guarantee that planes will continue landing at every airport that had flights on March 1.
The relief comes even as passenger numbers begin to tick up. The Transportation Security Administration (TSA) has screened more than 200,000 people on three days since May 8, marking an increase from a low in mid-April. Still, that's less than 10% of the number of screenings at this time last year. The data includes some airline and airport staff as well.
More:Why I always board last, no matter where I’m sitting on the plane
The uptick has resulted in some fuller-than-expected flights. For example, a recent full United flight raised social distancing concerns among travelers. While a few flights are operating full, the vast majority are empty, with the latest A4A data showing an average of just 23 passengers on U.S. flights during the week ending May 5.
Most airlines have already applied for air service exemptions from the DOT. The regulator has approved some. For example, it OK'd JetBlue Airways and Spirit Airlines to suspend service to other carriers' hubs, but rejected others, like United's request to suspend service to some smaller mountain communities in Colorado.
Airlines can also consolidate service to one airport in large metropolitan areas with multiple airports. Delta has used this exception to suspend flights to 10 airports across the U.S. until at least September.
Related: Airlines plead for relief from flying requirements for COVID aid
The new relief will not replace the DOT's previous exemptions or exceptions. Rather, the process appears a response to the industry's call to "rationalize" air service to meet the current market conditions.
"The relief described below will allow carriers to reduce their service obligations, thereby reducing carriers’ financial burden and providing flexibility to manage operations and staffing across their networks," the regulator said Tuesday.
The DOT expects all carriers receiving CARES Act funds to avail themselves of the new relief. This may even include Southwest Airlines, which stands apart from its peers as the only major U.S. carrier that — so far — has not suspended or asked to suspend service to any airports on its map.
Related: US will let JetBlue and Spirit suspend service to 16 hub airports
“[We've] restructured service across our network while maintaining service to all of our domestic cities, including five Hawaii markets, by the way," Thomas Nealon, president of Dallas-based Southwest, said during the airline's first quarter earnings call on April 28. The airline has slashed its schedule by up to 70% in May and 50% in June.
Airlines must apply for the new exemptions by May 18. The regulator aims to approve them "expeditiously" — something that may actually be likely considering its quick turnaround of CARES Act air service waiver requests so far.
Carriers are encouraged to rank their suspension requests and provide alternate choices. This will ensures that each airline can get the maximum relief available to it, while guaranteeing flights continue to all cities across the U.S.
Related: Labor groups slam Treasury for ‘playing games’ with airline bailout terms
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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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- 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.
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- $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.
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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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Intro Offer
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.