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Delta finally dehubs Memphis after years of pruning unprofitable flights

Analysis

After years of scaling back its Memphis hub, Delta Air Lines has officially declared Memphis is losing that status in late 2013. The airport's fate has been sealed as Delta has been steadily cutting service from Memphis - from a peak of 300 daily departures during 2000 to roughly 93 daily flights. Once the de-hubbing its complete Delta's departures from Memphis will decrease a further 35% to 60 daily departures.

Delta's reasoning in closing Memphis rests on the significant reduction in 50-seat jets it is undertaking to reduce its small jet fleet to roughly 125 shells from a peak of more than 500 five years ago. The carrier determined it is unprofitable to operate those aircraft in Memphis where the amount of local originating traffic is somewhat sparse.

Even though the official de-hubbing of Memphis comes as no shock to the airport, which has been courting other airlines, political backlash has ensued against Delta. Tennessee politicians are accusing the carrier of making false promises when it merged with Northwest in 2008 when the company assured service from Memphis would not diminish. As American and US Airways work through the requisite approval processes for their merger, the decision by Delta to de-hub Memphis will only create additional pressure on those carriers to pledge no hubs within their respective combined networks will lose their respective status.

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