Delta Air Lines Goes for a Latin Flair

From Houston, Continental has 779 daily departures and serves nearly 60 destinations in Latin America and the Caribbean, including 30 in Mexico. "We think Houston is extremely well positioned," Continental CEO Larry Kellner said during a conference call. Charlotte, meanwhile, has been a successful Caribbean hub for US Airways' (LCC Quote) unit of the same name.

Baldanza, a former US Airways executive, said Delta's buildup could hurt Charlotte. "Every person who flies to the Caribbean on Delta through Atlanta, there's a better than average chance they would have connected in Charlotte."

Consultant Mike Miller of the Velocity Group says Atlanta faces tough competition as a European hub. For European traffic, he says, northern hubs such as Chicago, Newark and Philadelphia can offer more direct routing. "From a lot of places, it does not make sense to go to Europe over Atlanta," he says. "But it does make sense to go to over Atlanta to the Caribbean and South America."

Sarvis says it is often suggested that he start flights to Latin America or the Caribbean from the two south Florida airports. But in Fort Lauderdale, he said, connections are limited, even though Delta is the airport's leading carrier, while in Miami, airport costs are high, about $30 per passenger vs. $3 in Atlanta.

"We have been asked often to expand into Fort Lauderdale, but every time I do the stats -- I look at the options, the connections, the cargo -- and I put flights into Atlanta instead," he says. "And I am asked every day, why do I not put flights into Miami? But when I compare Miami to Atlanta, it's just not worth it."