Delta notches record Q1 sales, but plane shortages could create a summer travel squeeze
Catch flights, not feelings… Delta Air Lines flew past Wall Street’s estimates yesterday with stellar first-quarter earnings. The Biscoff icon said it swung to a quarterly profit while revenue jumped 6% to $12.6B — a Q1 record. FYI: winter is typically the least profitable season for US airlines. Delta benefited as its lucrative business-travel category rebounded and fliers kept splurging on premium seats.
Passport stamped: Bookings for Delta’s international flights continued to boom with revenue for the category jumping 12% from last year.
Bags packed: Delta forecast record spring and summer revenue as warm-weather travel kicks off — and said it’s already notched its 11 highest sales days ever this year.
Made it outta the group chat… Postpandemic revenge travel has turned into YOLO travel as consumers keep prioritizing getaways over material goods. Worldwide, the International Air Transport Association expects a record 4.7B people will fly this year, which would beat a high of 4.5B in 2019. In the US, inflation isn’t curbing vacations: nearly half of Americans in a recent survey said they planned to take a trip requiring a flight or hotel this summer. In another survey, 40% of respondents said they expect to travel more this year than last.
Brace for a summer squeeze… As peak travel szn nears, airlines could be caught in the middle seat as soaring demand meets limited capacity. American carriers are expected to receive 32% fewer aircraft than planned (blame Boeing delays). Meanwhile, seat capacity is still down from prepandemic. US airfares, down 7% from a year ago, could pick back up if stronger demand + lower capacity leads airlines to raise prices.