Earlier this week, Delta Air Lines announced that it would be letting its SkyMiles members vote for one of three possible new European Island destinations in the Mediterranean. And, as I’ll detail, all three have been vying for flights to the States for some time now.
The three lucky destinations whose US destinies are in the hands of Delta’s SkyMiles members include Olbia (Italy), Malta (Malta) and Ibiza (Spain). I remember reporting on Malta’s interest in US flights almost a year ago for this publication, detailing how the government’s long-standing interest in getting Air Malta to fly long-haul was ill-placed. And while Air Malta—now relaunched as KM Malta Airlines—is unlikely (and isn’t ready) to fly to the States any time soon, Delta is a different story altogether.
The Options
Photo: Joseph Creamer | Shutterstock
The three options are Islands in the Mediterranean, popular with tourists. Ibiza and Malta are better known, but Olbia’s tourism numbers have grown considerably in recent years. While different countries, they all offer similar flavors: rich culture, a sizzling summer sun, and charming coastlines. Popular with Europeans, all three are also dominated by low-cost carriers.
Ryanair controls the market in Malta and Ibiza while, ironically, Spanish low-cost carrier Volotea has the strongest presence in Olbia in terms of flights. On the short-haul front, it’s tough for legacy airlines to compete. Given that neither of these cities have transatlantic flights, Delta would have a considerable monopoly on both point-to-point and connecting traffic beyond the chosen US gateway.
From a commercial standpoint, given the reasons I mention below, Ibiza and Malta are good seasonal options. Demand is more reasonable, and both solidify Delta’s presence in the Mediterranean. No matter, though, as the SkyMiles competition is all about one’s subjective standpoint.
Subsidies & Demand
Photo: Great Circle Mapper
None of these cities has had US connections since at least 2004 (though they have most probably never had such flights) except for Malta. Lufthansa flew a series of charters between Malta and Newark in 2021. Regardless, all three have been vying for a regular nonstop service to America for a while.
European Destination
Top US Markets (round-trip passengers for the 12 months ending July 2024)
Olbia
New York-JFK (3,800)
Los Angeles (3,100)
Malta
New York-JFK (13,200)
Newark (5,900)
Washington (5,900)
Ibiza
New York-JFK (20,000)
Miami (8,500)
Los Angeles (8,000)
Source: OAG Traffic Analyzer
The map above shows the three destinations connected to their highest-demand point of origin: New York-JFK. Delta has not revealed which US hub they might be served from.
As shown above, none of these origin and destination points have particularly high levels of traffic, but Malta and Ibiza are significantly more reasonable than Olbia. While Delta’s nonstop flight will both stimulate the point-to-point market and leverage North American connecting traffic, it’s still a risk. That’s where subsidies come into play. A lot of routes to niche places are subsidized by local authorities. That might be the case for these destinations too—at least for the beginning. Such deals are rarely made public.
However, Olbia has done just that. Per local media, the Sardinian Region is willing to cover 50% of airport fees for a period of three years for any such route. It has been eyeing direct flights to New York for a while. Ibiza wants at least one weekly service from either New York, Atlanta, or Miami. It has reportedly proposed “promotions” and other “actions” to incentivize demand for a new nonstop flight. Few details have emerged from Malta, but the debate on a service to the States is long-standing. In early 2024, the airport Chief said a flight to America was “unlikely” in the short to medium term. It is here that I will admit that I argued the same thing shortly after in an article for this publication. Clearly, I was wrong, given that it is an option for Delta.
United & Delta’s Battle For Mediterranean Control
Photo: Aena.
US-Europe dynamics are changing for American carriers. United Airlines has launched a slew of new, unusual routes on which it holds a complete monopoly. Examples include its flights to Palma de Mallorca (Spain), Malaga (Spain), and Bilbao (Spain). Its route strategy extends beyond Europe, with new flights to Nuuk (Greenland) and Ulaanbaatar (Mongolia) revealed in recent times.
Delta is the second-largest airline by flights and seats to Europe from the US after United. Its latest competition seems like an attempt at countering United’s special route strategy with the three previously untapped markets. One thing that might help Delta is that Olbia-bound flights from the States are very high-yielding, especially compared to Ibiza and Malta. It will have to offer lower fares, though, to attract passengers, given the lower demand.
A final point to make here would be that Delta’s cards are now on the table for all to see. It has three destinations in mind, and has asked SkyMiles members to pick just one. As Simple Flying’s Paul Hartley suggested, could this be a marketing tactic, at the end of which Delta reveals new routes to all three? If it has the capacity, that could be very interesting indeed.
- IATA Code
-
DL
- ICAO Code
-
DAL
- Year Founded
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1929