Delta Air sees healthy demand, especially on international routes
Business
Delta Air sees healthy demand, especially on international routes
DUBAI (Reuters) - Delta Air Lines (DAL.N), opens new tab is running its largest ever transatlantic schedule this year as it sees healthy travel demand, especially on international routes, senior executives said on Saturday.
Delta, one of the largest US airlines, has forecast record high second-quarter revenue thanks to buoyant demand for spring and summer travel.
"Summer's progressing strongly and demand is quite healthy," CEO Ed Bastian told reporters.
"Demand is growing faster internationally than it is domestically, and Delta is very well positioned to take advantage of that with its partners," Bastian added.
Delta says consumers are spending on experiences with travel a top priority after the pandemic.
Demand is particularly strong for premium travel, benefiting carriers like Delta.
“We have seen continued strength through the spring to early summer ... our international business is quite strong," Delta President Glen Hauenstein told reporters.
Rival American Airlines (AAL.O), opens new tab, however, said this week there was still excess seat capacity in the domestic market, resulting in discounting pressure.
U.S. carriers have plans to further moderate capacity in the second half of the year, which airline executives say will underpin the industry's pricing power.
BOEING
Delta operates a large mixed fleet including planes from Airbus (AIR.PA), opens new tab and Boeing (BA.N), opens new tab, which is engulfed in a quality and corporate crisis.
Bastian said Delta is "encouraged" by steps Boeing is taking with management changes and other adjustments at the company.
"I'm confident we will see improvement," Bastian said, adding Delta was still committed to its order for Boeing 737 MAX 10 jets.
Delta currently does not fly any version of the Boeing MAX but has MAX 10s on order for delivery next year. The MAX 10 - the largest version of Boeing's best-selling narrowbody jet - is still awaiting certification by the U.S. Federal Aviation Administration (FAA).
