Delta Air Lines plane. (photo via Delta Air Lines Media)
Delta Air Lines CEO Ed Bastian predicts a record-breaking summer for air travel. But it comes with an asterisk.
Demand might be surging, but flights are fewer and prices are skyrocketing, noted Bastian during an appearance on Meet the Press.
He is buoyed by what happened in the previous quarter.
Delta Air Lines CEO Ed Bastian (photo courtesy Delta Air Lines)
“Our team did a great job,” he said, referring to the unexpected gains after initially predicting a loss. “We had a significant operating margin.”
Graciously, Bastian admitted that lower fuel prices and Southwest problems over Christmas contributed to Delta’s big quarter. Whether or not it holds up for the summer quarter remains to be seen but Bastian is riding the wave.
“This has been one of the most difficult years, operationally, that we’ve ever had,” he said. He added that the employees of the airline will see a robust profit-sharing check and the company was able to bankroll some money for future quarters.
He predicted that, starting with the summer quarter, “the industry as a whole will see 10s of billions of dollars coming into the space.”
The surge, the pickup, the travel demand is going to continue to go on for several years, I think,” he added.
As for the problem with overcrowded luxury lounges, Bastian said, “People wanting to pay to get into your clubs is a good problem to have.”
The most popular destinations are expected to be New York City, Las Vegas, Orlando and London.
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