As Delta Grows Boston Its Focus Is On Profits Over Market Share

Delta Air Lines recently announced an impressive expansion out of Boston and has been bulking up its schedule…

As Delta Grows Boston Its Focus Is On Profits Over Market Share

Delta Air Lines recently announced an impressive expansion out of Boston and has been bulking up its schedule as the recovery continues. As the carrier has been working its way up to the top in Boston, airline executives made it clear on Delta’s third-quarter earnings call that the focus in Boston is not a market share play but one of more sustainable, profitable growth.

Delta Air Lines is making a play for Boston, but one that is focused on profitability over market share. Photo: Vincenzo Pace | Simple Flying

Delta bulks up Boston

Boston Logan International Airport (BOS) is the newest hub in Delta’s network. A city with no dominant, established legacy carrier, the airline saw some opportunities that it seized on. It added some transatlantic flying to its key international hubs and bulked up domestic flying. Just before the pandemic hit, the airline declared Boston a hub, and it was clear more routes would be coming.

That growth was paused in 2020 and through early 2021 because of the crisis. Boston, as a coastal hub, was a more business-heavy origin and destination city and a transatlantic hub, which did not bode well through much of 2020. However, in the last few months, business travel has started to come back, as have leisure travelers.

This was marked by the launch of two new long-haul international routes. The carrier announced, for summer 2022, flights from Boston to Tel Aviv (TLV) and Athens (ATH). This was on top of growth in the domestic market to San Diego, Denver, and Baltimore.

Delta Airbus A330
Delta has not been shy about adding new long-haul flying out of Boston. Photo: Getty Images

Going for profitability over market share

Glen Hauenstein, Delta’s President, stated the following on the carrier’s third-quarter earnings call about Boston:

“I think what we see is our products suit the Boston market quite well, being a premium carrier and having Boston be a very affluent city with a huge component of corporate travel. We think that we are best suited to deliver the best products and services to the customers of Boston. And we’re going to, as I said in previous calls, we don’t want to be the biggest, we just want to be the most loved and the most profitable.”

This is not a new strategy for Delta. In March, as airlines were preparing to ramp up and the onslaught of ultra-low-cost carriers (ULCCs) was a concern, Mr. Hauenstein reiterated that Delta was laser-focused on profits over market share. The same is true in Boston – even as it prepares to eclipse JetBlue and American in the city.

As Delta Grows Boston Its Focus Is On Profits Over Market Share
Delta has been building up a hub for both Boston-area travelers and connecting ones. Photo: Getty Images

A focus on its product offering

Next year, Delta will be debuting its brand new Airbus A321neo out of Boston. Featuring the airline’s latest domestic first class seat and a sizeable extra-legroom economy cabin, Delta is going after more premium travelers and offering a completely different product than what other airlines offer.

As Delta Grows Boston Its Focus Is On Profits Over Market Share
Delta will debut its new first class cabin out of Boston next year. Photo: Delta Air Lines

Another focus of Delta has been to offer more customer-friendly aircraft. This includes the Airbus A220. The airline is looking to build up its daily departures of this aircraft, which features fewer middle seats than other mainline narrowbody aircraft and an upgraded passenger experience.

Separately, Delta has upgraded some transcontinental services. Flights to Los Angeles now feature flatbed seats in business class. Other flights, including select flights to Seattle, are also getting an upgrade to feature lie-flat seating. The goal is to offer customers an upgraded passenger experience and expecting to grow its profitability organically and then move into market share.

Source : Simple Flying More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

LATAM Confirms Plans To Relaunch 787 Sydney Flights Via Auckland

LATAM Airlines Group is hoping to relaunch its iconic Santiago-Auckland-Sidney route during 2022’s first quarter, the airline confirmed…

LATAM Confirms Plans To Relaunch 787 Sydney Flights Via Auckland

LATAM Airlines Group is hoping to relaunch its iconic Santiago-Auckland-Sidney route during 2022’s first quarter, the airline confirmed Simple Flying today. This flight has been suspended since 2020 due to the impact of the COVID-19 pandemic and the travel restrictions worldwide. Nevertheless, there could be a date in sight to relaunch it.

LATAM wants to reactivate its routes to Auckland and Sydney next year. Photo: Vincenzo Pace | Simple Flying

The iconic route

In 2019, LATAM Airlines Group had two destinations in Australia and one in New Zealand. The airline operated the routes Santiago de Chile-Auckland-Sydney, Santiago de Chile-Sydney, and Santiago de Chile-Melbourne, offering 36,091 seats per month.

LATAM used its Boeing 787-8 fleet to connect with Melbourne and the bigger 787-9 to Auckland and Sydney. Simple Flying reviewed LATAM’s business class between Sydney and Auckland in 2019.

Prior to the COVID-19 pandemic, Air New Zealand and Qantas also flew between Oceania and South America. Air New Zealand connected Auckland with Buenos Aires using its B777-200/200ER fleet; Qantas flew between Sydney and Santiago with its Boeing 747-400 fleet. Nowadays, there are zero scheduled commercial flights between both regions, although Qantas did operate its largest flight ever between Buenos Aires and Darwin last week.

Both regions have had some of the strictest travel restrictions worldwide, which hasn’t helped either to restore the connectivity. Nevertheless, LATAM expects things will change shortly.

LATAM B787
LATAM will use the Boeing 787-9 in these routes. Photo: Vincenzo Pace | Simple Flying

Relaunching the route

Today, LATAM sources confirmed Simple Flying that restoring the routes to Auckland and Sydney is a possibility. The route to Melbourne is still suspended, and there’s no date in sight yet.

At the earliest, LATAM would reactivate the route from March 1, 2022, with three weekly flights using its B787-9 fleet. Then, it could increase to six flights per week by the end of March.

LATAM is very interested in restoring its connectivity to New Zealand and Australia, as it was a unique market. Moreover, the airline also has invested in acquiring slots at these hubs, so it should have a strong incentive to keep on flying these routes.

Nevertheless, many things can still go wrong between today and that date. The airline sources did point out that travel restrictions have to be eased on both sides, and the pandemic has to continue its downwards trajectory before an official announcement can be made.

LATAM Confirms Plans To Relaunch 787 Sydney Flights Via Auckland
LATAM is currently offering 846 flights to international destinations not in Latin America and the Caribbean. Photo: Vincenzo Pace | Simple Flying

How’s LATAM international connectivity?

In October 2021, LATAM Airlines Group is offering 846 flights to international destinations not in Latin America and the Caribbean.

The carrier (currently under Chapter 11) has a capacity of 224,206 seats in these routes. LATAM has 19 international routes not to Latin America and the Caribbean, mainly to the US.

A couple of years ago, LATAM offered 1,483 monthly flights, including destinations like Johannesburg (from Sao Paulo) and Sydney. LATAM Airlines Group still has to recover 43% of its pre-pandemic capacity and 17 routes, according to stats by Cirium.

According to its latest projections, the South American carrier expects to recover its international long-haul connectivity by 2024 fully. Due to the impact of the COVID-19 pandemic, LATAM has reshaped and resized its long-haul fleet. It has converted quite a few Boeing 767-300ERs into freighters, rejected the leases of its Airbus A350 fleet, and sent some Boeing 787 Dreamliners from Chile to Brazil (to fill the gap left by the exit of the A350).

Would you want to travel onboard LATAM’s Santiago-Auckland-Sydney route? Let us know in the comments below.

Source : Simple Flying More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.