United betting on sun-seekers with new Florida flights


A United Airlines Boeing 737-800 and United Airlines A320 Airbus on sight approaching San Francisco International Airport, San Francisco.

Louis Nastro | Reuters

United Airlines is making a play for Florida this fall and winter, a bet that sun-seekers from northern states will become a bright spot for the carrier, as it has a bleak outlook for international and business travel due to the coronavirus pandemic.

The Chicago-based airline said Wednesday it plans to add up to 28 non-stop flights to Sunshine State from northern cities to four Florida airports. Flights from LaGuardia Airport, New York and Boston and Cleveland to Florida cities Fort Lauderdale, Fort Myers, Orlando and Tampa are scheduled to begin Nov. 6. United said it would add nonstop flights to Fort Meyers and Tampa from Columbus, Ohio, Indianapolis, Milwaukee and Pittsburgh in December.

The new flights are a strategic shift for United. The airline and major competitors have long been familiar with a model that flies flights through major hub airports. United’s Florida initiative is its biggest increase in nonhub flights, according to vice president of domestic network planning, Ankit Gupta. Such point-to-point flights are more commonly used by discount companies such as Spirit-based Florida. The state is also a major market for competitors JetBlue, Delta and American, which operates a Miami hub.

New York was the top source of visitors to Florida last year, according to Visit Florida, the state’s tourism company.

Airlines are looking for green shoots of demand because the pandemic keeps many travelers at home. The average number of daily screens by the Transportation Security Administration at U.S. airports is more than 70% down from a year ago this summer, usually the busiest time of the year for air travel.

While demand generally remains far from 2019 levels, Gupta told CNBC in an interview that the airline is taking a “surgical” approach to adding capacity. The United planning team noticed an uptick in search of flights to Florida.

Gupta acknowledged the recent rise in coronavirus cases in Florida and said the airline remains flexible to add or remove flights, depending on demand trends.

“We will adjust our capacity as needed,” he said.

United in late July said it plans to fly about 37% of its 2019 capacity by next month. The demand for holidays at the end of the year has started to show, but it remains much weaker than last year and some travelers may prefer to wait before buying tickets, Gupta said.

“The nature of the reservation has changed,” he said.

.