Don’t Count on Airlines to Fully Recover for 3 Years: Delta CEO
Photo Credit: In the good old days, a Delta aircraft flies over Florida. Flickr / Eric Salard
Skift Take
It could have been worse. Delta Air Lines reported $8.6 billion in first quarter revenue, but demand fell by 95 percent in April. The second quarter could be way more ugly, even after the airline cut its schedule by 85 percent.
Air travel will not rebound to pre-pandemic levels for another three years, Delta Air Lines CEO Ed Bastian warned analysts during the company's first quarter earnings call on Wednesday. "Demand for near-term air travel dropped to almost zero in a matter of weeks," he said.
But when travel starts to return, Bastian predicts Delta will be a different airline. "Safety will not be limited to flight safety, but [will expand] to personal safety," Bastian said. "People will pay a premium on service excellence like never before."
Flights, which before the pandemic were operating 80-90 percent full, may only be 65-70 percent full. Although Bastian did not speculate on whether airfares will rise, he stressed that the airline will be "different" than it was even 60 days ago and will focus on a premium experience, inflight and in airports. "I firmly believe people will pay for premium service."
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