Delta Air Lines expands focus city strategy amid rising loyalty revenue

Ed Bastian, Chief Executive Officer
Ed Bastian, Chief Executive Officer - Delta Air Lines
0Comments

Delta Air Lines has developed a distinct approach to its route network by establishing “focus cities” at certain airports, a strategy that sets it apart from other major U.S. carriers.

The airline currently designates Austin-Bergstrom International Airport (AUS), Cincinnati/Northern Kentucky International Airport (CVG), and Raleigh-Durham International Airport (RDU) as its focus cities. These locations are larger than typical destinations, known as “spokes,” but do not reach the scale of Delta’s main hubs such as Hartsfield-Jackson Atlanta International Airport, Detroit Metropolitan Wayne County Airport, or Salt Lake City International Airport.

Focus cities receive more routes and flights compared to non-focus destinations. For example, Delta operates significantly more routes from its Austin focus city than from San Antonio, which is not a focus city.

Unlike Delta, American Airlines and United Airlines do not officially designate any of their airports as focus cities. Some locations on their networks might function similarly based on flight volume alone—such as Boston Logan International Airport and RDU for American, or Cleveland Hopkins International Airport for United—but the airlines do not use the same terminology or strategy.

Delta executives say that having focus cities increases relevance among frequent flyers—a key factor in building customer loyalty. Glen Hauenstein, president of Delta Air Lines, explained during a recent earnings call: “What makes customers choose Delta over a different carrier? I think the answer is relevance. If we’re not relevant, we cannot acquire the SkyMiles [members], we cannot acquire the credit cards — the ecosystem — you have to have relevance. That’s why it’s important for us to have focus cities.”

Hauenstein highlighted Austin as an example: “Austin we’ve chosen because we don’t have a Texas hub,” he said. “Texas is in and of itself a huge revenue market. So, seeing those opportunities, looking at the demographics, looking at the GDP … and saying where do we need to have a relevant offer so people will join our SkyMiles program, they will get our credit cards, and we can produce the relevance.”

Delta’s competitors have large hubs in Texas—American at Dallas Fort Worth International Airport and United at Houston’s George Bush Intercontinental Airport—while Southwest Airlines counts Dallas Love Field and Houston’s William P. Hobby Airport among its largest bases.

Loyalty programs now represent a significant source of income for Delta. In the three months ending September 2025, nearly $2 billion—or 12% of total revenue—came from loyalty activities such as SkyMiles memberships and cobranded credit card usage.

The choice of new routes from focus cities like AUS is influenced by more than just passenger demand. According to Hauenstein, route decisions involve analyzing how best to maximize interactions between airline operations and cardholder engagement rather than focusing solely on individual route profitability. This could lead to flights being added even when travel demand does not independently justify them if there is evidence that many local loyalty members travel to those destinations.

Data from aviation analytics firm Cirium indicates that in 2025 Delta will operate about 25% more flights and offer roughly 20% more seats from AUS compared to 2024. The expansion includes new connections to Denver International Airport, Indianapolis International Airport, Louis Armstrong New Orleans International Airport—and less obvious additions such as McAllen International Airport in Texas and Northwest Florida Beaches International near Panama City Beach.

Meanwhile, growth at CVG and RDU has been slower; seat capacity increased by just 3% and 4%, respectively this year compared to last year according to Cirium data. Both remain smaller than before the COVID-19 pandemic in 2019.

Delta has no current plans to add more focus cities despite noting their profitability and ongoing role in its network strategy. Airports once considered for this status—such as Nashville International or San Jose Mineta—have reverted back to regular spoke destinations after previously holding focus city status before the pandemic.

There remains potential for airports to move beyond focus city designation; Boston Logan was upgraded from a focus city to hub status in 2019.



Related

Katie Genter Senior writer - The Points Guy

Marriott ends partnership with Sonder; guests advised on future reservations

Marriott has announced it is ending its partnership with Sonder, a company known for apartment-style accommodations and boutique hotels.

Summer Hull Director of content - The Points Guy

Thousands of US flights delayed or canceled amid ongoing air traffic control staffing crisis

This weekend, air travelers across the United States faced severe disruptions due to staffing shortages at numerous air traffic control facilities.

Carsten Spohr, CEO of Deutsche Lufthansa - Deutsche Lufthansa

Rove Miles adds Lufthansa as transfer partner for broader loyalty point options

Rove Miles, a rewards program that operates independently of credit cards, has announced the addition of Lufthansa’s Miles & More loyalty program as its latest transfer partner.

Trending

Associated Press
Boeing on Wednesday reported mixed third-quarter results, with higher aircraft deliveries and a growing order backlog offset by certification delays for its 777X jet.
Riyadh Air, the new national carrier of Saudi Arabia, completed its inaugural passenger flight on October 26, 2025. Flight RX401 departed Riyadh King Khalid International Airport (RUH) at 3.26am, landing at London Heathrow (LHR) six hours and 48 minutes later, all times local. On this inaugural flight the entirety of the passage were staff members
With the additional gates, the airline plans 10 new domestic destinations, including Santa Barbara and Monterey in California.
Paris, October 23, 2025 Air France-KLM completes acquisition of a 2.3% stake in WestJet Air France-KLM today announced that it has completed the...
Yahoo finance
Paris, October 23, 2025 Air France-KLM completes acquisition of a 2.3% stake in WestJet Air France-KLM today announced that it has completed the acquisition of a 2.3% stake in Canadian carrier WestJet. This transaction was initially announced on May 9th, 2025. Air France-KLM purchased that stake from its joint venture partner Delta Air Lines, which had taken a 15% minority stake in WestJet, as part of a previously announced separate transaction also involving Korean Air’s purchase of a 10% inter
Air France-KLM today announced that it has completed the acquisition of a 2.3% stake in Canadian carrier WestJet.
Brunei has become the latest country to allow its airlines to operate Chinese-made aircraft, according to new rules published on Thursday by Brunei's aviation regulator, in a boost for Shanghai-based planemaker COMAC.
Aviation Week Network
Aviation Week's Routes 360 Headlines on Wednesday 22 October 2025 covers the latest notable developments and key insights from Routes 360 members.
Aviation Week Network
LIMA, Peru—The introduction of new Embraer E195-E2 jets into LATAM Airlines Group’s fleet will allow the Chile-based company to add 35 South American destinations on top of the 130 its multi-national airlines currently serve within the region.
Boeing won approval on Friday to raise its 737 MAX production to 42 planes per month, the Federal Aviation Administration said, easing a 38-plane cap in place since January last year and boosting its efforts to shore up its finances and move past concerns over safety and quality.

The Weekly Newsletter

Sign-up for the Weekly Newsletter from Sky Industry News.