CEO Ed Bastian said trends in ticket sales for the airline bottomed out in the later part of August and the first part of September, according to Reuters
Delta Air Lines’ (DAL) CEO reportedly said that trends in travel demand had regained their footing, after a surge in coronavirus cases this summer weighed on the industry’s rebound from last year. Delta stock dropped while other airline stocks were mixed.
CEO Ed Bastian, in remarks to reporters on Sunday, said trends in ticket sales for the airline bottomed out in the later part of August and the first part of September, according to Reuters. He made the remarks on the sidelines of a meeting held by the International Air Transport Association, the news agency said.
He added that business traffic is growing back in the U.S., Reuters said. And he said next year’s domestic travel bookings were set to exceed 2019 levels.
In September, Delta said it expected third-quarter revenue to come in at the lower end of a forecast, initially given in July, for a 30% to 35% drop compared with the period in 2019. The airline reports third-quarter earnings on Oct. 13.
Delta on Sunday also said it would bring new service next year to Baltimore, Denver, San Diego, Athens and Tel-Aviv.
The group also said that demand next year was set to reach 61% of that in 2019. For this year, it was seen coming in at 40% of 2019 levels.
While serious issues remain, the path to recovery is coming into view, Willie Walsh, the IATA’s director general, said in a statement.
Delta stock dropped 0.9% to 44.96 in the stock market as the broader indexes retreated. Shares were above their 200-day line after gapping up 6.5% on Friday, as airline and travel stocks have fared well in recent weeks.
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