Delta’s Business Travel Sales in Second Quarter at 80% of 2019 Levels
CEO apologizes on earnings call for cancellations, delays and long wait times >>
by: Harvey Chipkin
Delta Air Lines’ business travel sales in the second quarter reached 80% of 2019 levels on a 65% recovery in volume, according to Glen Hauenstein, president, on a third quarter earnings call. Recent corporate survey results, said Hauenstein, show positive corporate expectations for business travel in the third quarter, with several of the least recovered sectors conveying strong optimism for increased travel this fall. As the recovery progresses in these sectors, he said, “we expect an outsized impact on our coastal hubs.” Corporate customers, said Hauenstein, expressed increased plans to travel internationally in the second half of the year, given the elimination of the pre-departure test requirement for flights returning to the US. For the third quarter, he said, Delta is expecting business travel revenue to be up 1% to 5% on capacity that is 15% to 17% lower. Hauenstein also said premium class sales continue to lead with load factors and yields higher than in 2019. He said a “structural shift to premium is key to managing through inflation and economic cycles.” Also on the call, CEO Ed Bastian said he “sincerely apologizes” to those who have been impacted by cancellations, delays and long wait times over the last two months. He said July is off to a very good start, with a 99.2% completion factor through the first 11 days of the month, which is exactly on par with the same holiday period in 2019. In fact, over the last seven days of this period, said Bastian, Delta had only 25 cancellations worldwide on over 30,000 departures. He said the chief issue is not hiring but a “training and experience bubble,” and that “the most important point” is that all of these operational issues are temporary.
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