Delta Airlines’ Q1 performance isn’t flattering as it lost $1.2 billion. However, its executives are positive that the airline company can recover by summer. CEO Ed Bastian said that Delta had the best two weeks in terms of ticket sales since the pandemic started last year. Most of the bookings were headed to beaches and resorts. However, Delta CEO Ed Bastian expects business travel to pick up either by late summer or fall thanks to the vaccination rollout in the US.
He said that “our business is turning the corner and we’re moving into an active recovery phase”. He also added that “we see the business continuing to improve as consumer confidence grows”.
Returning to Pre-Pandemic Level
Several airlines experienced a surge in their bookings since spring break began. For Delta, bookings doubled from January to March. And given its current numbers, it has reached sales up to 85% of its pre-pandemic level.
Airlines are currently working towards adding flights as summer vacation is on the horizon. American Airlines expects to hit 90% of its pre-pandemic numbers by the summer of this year.
According to Bastian, the only reason their recovery is going to be delayed is if cases pick up again. The good news is that the US may get herd immunity soon given the number of people getting vaccinated.
Delta on May 1, to accommodate the rising demand in travel starts selling middle seats. Recently, CDC released a study saying that vacant middle seats reduce the risk of COVID19 transmission up to 57%. The airline industry in unison finds the study to be faulty. Bastian said that “we said all along we will sell those middle seats when customers are confident and comfortable sitting there”. He added that “science has given us that confidence around the vaccinations”.
As far as international travel is concerned, Bastian believes that the resumption of international travel will be slower. However, a US-UK corridor is possible since the US and UK progressed in their respective vaccination programs. Bastian thinks that travel to Europe, Asia, and South America is most likely six months to a year away.
