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Delta Airlines commits to investment in Texas with 5 new routes; here’s where they go
Delta Airlines reaffirmed its commitment to the Lone Star State this week, announcing that the company would be adding five new nonstop routes from Austin.
According to a news release, Delta will add daily nonstop service to Panama City, Fla beginning in March 2025. Additionally, the airline said it will add new, nonstop service to Indianapolis, Memphis, San Francisco and Tampa. Delta said that starting these new routes will provide Austin customers “more options than ever before.”
For Delta, which has seen its stock fluctuate recently, the additions symbolize stability as many airlines in the industry are trying anything to cultivate profits.
Delta stock still shakey after IT debacle
Delta’s IT debacle in July, caused by Austin-based CrowdStrike, resulted in a turbulent few weeks for the company, filled with mass delays and cancellations. In that time, the airline, thought to be the stalwart of the industry, claims to have lost $500 million. The company has seen its stock price drop almost 9%.
Despite that floundering stock, adding routes and generating profits is more in line with where Delta has been in recent years. To back this up, as of July 2024, Delta Air Lines was the most valuable airline in the world, with a market value of $34 billion. Delta also leads in brand value, revenue, total assets, and market capitalization according to Statistica.
American Airlines continues slashing routes in Austin
In September, American Airlines announced plans to eliminate four routes to and from Austin as the company continues to navigate the industry in hopes of landing in a more profitable financial model.
That cut was the latest shrinking of routes after the airline axed 21 Austin flights in 2023 and five other routes in July of this year.
In a previous statement, the company said: “American will continue to offer customers access to our comprehensive global network of more than 350 destinations with one-stop connections. We’re proactively reaching out to impacted customers and apologize for any inconvenience this may cause.”
American’s second quarter generated a net income of $717 million, or $1.01 per diluted share, and the company saw an operating cash flow of approximately $1.1 billion. However, the airline still has a long way to go as it has been battered in the stock market this year and still had a debt of $40 billion as of March.
Southwest wants a clean slate
In a July news release, Southwest Airlines outlined a number of changes to its seating model, stating that “preferences have evolved, with more customers taking longer flights where a seat assignment is preferred.”
With the onslaught of changes happening in the airline industry, Southwest hopes moving to assigned seating and revamping its boarding process will cast a wider net for the airline’s appeal to both new and current customers: Research found that 80% of current Southwest customers and 86% of potential customers prefer assigned seating.
The airline did not provide a date for the switch. In addition to assigned seating, Southwest is rolling out premium seating options on all flights and introducing red-eye flights.
Spirit and JetBlue are making structural changes
East Coast powerhouse JetBlue once had dreams of merging with Spirit Airlines to compete with bigger airlines. That merger was blocked and the airline is now cutting 20 routes and pulling out of five cities altogether. In line with Southwest, Spirit recently announced it would offer premium seating — a move that effectively put the final nail in the coffin of budget airlines as we knew them.
Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email [email protected].
This article originally appeared on Austin American-Statesman: Delta Airlines adds new routes in Texas amid rapid change in industry
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