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Delta Air Lines expands focus city strategy amid rising loyalty revenue

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Delta Air Lines expands focus city strategy amid rising loyalty revenue
Research
Webp ed
Ed Bastian, Chief Executive Officer | Delta Air Lines

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.

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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.

Organizations Included in this History
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