American’s Continued Growth @ LGA Post Slot Swap, New Routes, End of PHL “Shuttle”

Almost four years ago, Delta and US Airways received approval from the Transportation Department and the Federal Aviation Administration for their slot swap. Delta gained 132 LGA slots, while US received 42 DCA slots, $66.5 million in cash, and transfer of Delta’s route authority to fly to São Paulo, Brazil. If US Airways had only known that a merger with American was on the horizon, it likely would not have given up the slots (even with the potential divestiture requirements), in favor of beefing up its LaGuardia presence.

To compliment its new shuttle property at LGA, American is now looking to increase routes at the airport. In the last few months its announced flights to: Akron, Cincinnati, Jacksonville, Memphis, Minneapolis and Orlando, a total of 15 peak flights. The majority of these slots are coming from flights that used to operate multiple times to the US hub in Philadelphia (dropping from 10x a day to only 4).

As per The Motley Fool

American Airlines is also cutting back on routes with severe overcapacity in favor of the undersupplied markets where it is adding flights. Pricing has collapsed on the New York-Dallas route since Southwest Airlines and Virgin America began serving it last year. American Airlines is trimming its schedule from 14 daily flights to 12 daily flights in response. Chicago is another market that has been routinely oversupplied this year. On the LaGuardia-O’Hare route, American is cutting back to “only” 13 roundtrips a day, compared to 16 daily roundtrips today. Other cities losing flights include Pittsburgh (down from eight to seven daily roundtrips) and Miami (down from 12 to 11 daily roundtrips).

Check out the rest of the analysis on AA’s LGA growth plans here.  Thanks to Len from MFL2 for passing on to our readers!


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