Despite all the circumstances and losses, Delta Air Lines expects to make big profits again this year. Especially considering traveling in the US.
Despite the continuing high incidence of disease and the situation surrounding the omicron variant, Delta Air Lines is optimistic. Not only that – the US airline expects to turn a profit again next March. This is despite the expected losses for the months of January and February such as fvw.de mentioned. Looking at the USA in particular, CEO Bastian is also sure that after the expected settlement of the number of injured, business trips will return in particular.
‘People are willing to travel’
Delta Air Lines recently said the fast-moving omicron variant will delay travel recovery by at least 60 days and contribute to a first-quarter loss. However, the US airline expects to remain profitable for the rest of the year and is optimistic otherwise. Because, according to the airline, the number of coronavirus cases in the United States is widely expected to peak in the next seven days. The airline is convinced that the recovery in travel in the second half of February should then return to its original course in December.
We’re still seeing our boss’s day and beyond for booking patterns to be healthy. People are ready to go, ready to travel.
Ed Bastian, CEO of Delta Airlines
Bastian believes that the Omicron-related rest period for business trips and trips abroad can last up to 90 days. And while the Atlanta-based airline forecast losses for January and February, it expects to return to profits in March and “big profits” for the past three quarters and for the year as a whole. However, the wide disparity in sick leave rates across major US airlines, which continue to cause flight cancellations, may mean that Delta Air Lines results are not as meaningful as they usually are.
Delta Air Lines revenue is up 74 percent over the same period in pre-crisis 2019, even as revenue from international passenger traffic remains at just 50 percent due to ongoing travel restrictions in some countries. Demand for domestic business travel remained 60 percent of the 2019 level in the fourth quarter. Delta CEO Bastian is very optimistic, at least in terms of the outlook for business travelers.
Conclusion on Delta Air Lines forecast
Delta Air Lines is one of the few airlines in the world – and in the US – that is so confident about the travel recovery. In particular, the resurgence of business flights should help Delta Air Lines make big profits again this year. At least according to the company’s own expectations. Ultimately, we will see by the end of 2022 if Ed Bastian is right.
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