Virgin Atlantic cuts Austin-London route, a rare blow for the Texas city
Virgin Atlantic announced this week that it will suspend its service between Austin and London's Heathrow Airport (LHR) beginning in January 2024, delivering a rare bit of bad news for the otherwise-booming Austin-Bergstrom International Airport (AUS).
Virgin Atlantic's London service will end Jan. 7. Passengers with tickets booked beyond that wind-down date will be offered refunds.
The move comes as part of a larger schedule shake-up for the carrier, ending a route that has been in place for less than two years.
In announcing the decision, Virgin Atlantic officials cited a “persistent softening in corporate demand, specifically the tech sector.”
It’s an unusual blip for Austin-Bergstrom, which has seen skyrocketing passenger traffic over the last decade, inviting a growing list of nonstop international destinations — all as the surrounding region’s population has ballooned.
July was the airport’s busiest month ever. And through August, airport data showed total 2023 passenger traffic was up 39% from just five years ago. Passenger traffic between January and August for international flights was up 121% from 2018.
However, Austin has run into some challenging economic forces of late, particularly in its prominent tech sector.
Earlier this year, economic data collector CivMetrics found the city to be the fifth worst in the U.S. for layoffs, trailing only Seattle; San Francisco; Redmond, Washington (home to Microsoft); and San Diego.
Those conditions figured into Virgin Atlantic's thinking in cutting the Austin-London route, the airline revealed.
“Demand in the tech sector is not set to improve in the near term, with corporate demand at 70% of 2019 levels,” Juha Jarvinen, chief commercial officer, said in a statement.
Austin's remaining transatlantic service
Despite the loss of Virgin Atlantic, Austin isn’t left without European service — or even flights to London, for that matter.
Sure, the absence of Virgin Atlantic will mean 17% fewer transatlantic seats during the first quarter of 2024 versus the same period in 2023, according to data from Cirium schedules.
However, British Airways still offers daily nonstop service to Heathrow that it launched back in 2014. That’s on top of Lufthansa’s nonstop service to Frankfurt International Airport (FRA) and KLM’s service to Amsterdam Airport Schiphol (AMS) that began last year.
“AUS is grateful to the incredible Virgin Atlantic team for launching this ambitious route. We hope to welcome them back one day," airport officials said in a statement to TPG on Tuesday while noting the airport's existing transatlantic service "to London and beyond remains intact."
Virgin Atlantic adds more Miami-to-London flights
Meanwhile, Virgin Atlantic isn’t just reducing service between the U.S. and Europe.
As part of its schedule shake-up, the carrier announced plans to scale up its service between Heathrow and Miami International Airport (MIA) to 14 weekly round trips for the summer 2024 season.
The airline said the changes are meant “to capitalize on continued robust customer demand for premium leisure travel.”
The comment tracks with trends noted by U.S. airline executives in recent months, with carriers like Delta Air Lines and United Airlines noting robust demand for premium-cabin seats among leisure travelers, even as business travel — though improved — has been slower to fully recover in the wake of the pandemic.
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Annual Fee
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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.
- 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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- 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.