Why Delta needs to recover at its core Atlanta, Detroit, and Minneapolis hubs
Delta took advantage of a unique opportunity last year. As other airlines struggled with surging travel demand, the Atlanta-based carrier used the capacity it was flying to grab share in several of its most competitive hubs. “We wanted to maintain and increase our shares in the coastal gateways because without that, our opportunity for growth in the future is somewhat limited,” Delta President Glen Hauenstein said at an investor event in December. And that’s what the airline did. It began this year larger in terms of seats in Boston, New York, and Seattle than it was in 2019, according to Diio by Cirium schedules. All three, plus Los Angeles, benefit from big investments by Delta, including multi-billion dollar new terminals or facilities in Los Angeles, New York, and Seattle. These markets are clearly where the airline plans to grow in the years to come. But what about Delta’s core? The recovery of its core hubs — Atlanta, Detroit, Minneapolis-St. Paul, and Salt Lake City — was postponed amid operational challenges that forced the airline and others to fly less than hoped during the second half of last year. Those challenges included airline staffing, particularly of pilots, air traffic control constraints, and aircraft delivery delays. That plan, owing to many of the same operational constraints that affected the airline industry last year, remains at the gate. It faces, in industry parlance, a rolling delay. “Aviation infrastructure is still fragile,” Delta CEO Ed Bastian said during a Q1 earnings call earlier in April. Seats at three of the carrier’s core hubs remain down from 2019 levels through at least the third quarter. Atlanta is down 8.1% in the second quarter and 2.9% in the third; Detroit 18% and 16%; and Minneapolis-St. Paul 11% and 8.5%, Diio schedules show. Seats in Salt Lake City, owing in part to the surge in demand for outdoor-oriented destinations in the West during the pandemic, are roughly flat in the June quarter, and up 3% in the September quarter.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-04-19/sky/why-delta-needs-to-recover-at-its-core-atlanta-detroit-and-minneapolis-hubs
https://portal.staralliance.com/cms/logo.png
Why Delta needs to recover at its core Atlanta, Detroit, and Minneapolis hubs
Delta took advantage of a unique opportunity last year. As other airlines struggled with surging travel demand, the Atlanta-based carrier used the capacity it was flying to grab share in several of its most competitive hubs. “We wanted to maintain and increase our shares in the coastal gateways because without that, our opportunity for growth in the future is somewhat limited,” Delta President Glen Hauenstein said at an investor event in December. And that’s what the airline did. It began this year larger in terms of seats in Boston, New York, and Seattle than it was in 2019, according to Diio by Cirium schedules. All three, plus Los Angeles, benefit from big investments by Delta, including multi-billion dollar new terminals or facilities in Los Angeles, New York, and Seattle. These markets are clearly where the airline plans to grow in the years to come. But what about Delta’s core? The recovery of its core hubs — Atlanta, Detroit, Minneapolis-St. Paul, and Salt Lake City — was postponed amid operational challenges that forced the airline and others to fly less than hoped during the second half of last year. Those challenges included airline staffing, particularly of pilots, air traffic control constraints, and aircraft delivery delays. That plan, owing to many of the same operational constraints that affected the airline industry last year, remains at the gate. It faces, in industry parlance, a rolling delay. “Aviation infrastructure is still fragile,” Delta CEO Ed Bastian said during a Q1 earnings call earlier in April. Seats at three of the carrier’s core hubs remain down from 2019 levels through at least the third quarter. Atlanta is down 8.1% in the second quarter and 2.9% in the third; Detroit 18% and 16%; and Minneapolis-St. Paul 11% and 8.5%, Diio schedules show. Seats in Salt Lake City, owing in part to the surge in demand for outdoor-oriented destinations in the West during the pandemic, are roughly flat in the June quarter, and up 3% in the September quarter.<br/>
