Delta lifts profit outlook on sustained travel demand

At an investor meeting, the carrier said the travel demand has been robust due to a shift in consumer spending away from goods and into services

Jun 28, 2023

While travel spending remains strong, rising interest rates, high inflation and mounting job losses have raised concerns about the elasticity of consumer demand. CEO Ed Bastian played down those concerns, saying wealth accumulation during the pandemic has left airline customers in "quite strong" health.

Key takeaways

  • The airline expects the demand trend to last for multiple years, underpinned by household savings;
  • Constrained capacity due to shortages of aircraft, spare parts and labor has also boosted the industry's pricing power;
  • Bastian warned that a failure to deliver reliable service could hurt demand.

Get the full story at Reuters

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