Delta sees another annual rise in profit and revenue in 2020 driven by what Chief Executive Ed Bastian called a growing interest in air travel by consumers across the generational spectrum. “People are more inspired to travel,” Bastian told Reuters ahead of the carrier’s investor day, citing the increased affordability of flying and advances in social media and technology, even as environmental and “flight-shaming” activists threaten air travel growth in Europe. Delta is forecasting 2020 profit of $6.75 to $7.75 per share, versus analysts’ mean estimate of $7.06 according to IBES data from Refinitiv, on revenue growth of 4% to 6% and $4b of free cash flow. Still, Bastian said Delta’s investors and customers are also increasingly concerned about the environmental impact of air travel and cited airlines’ ability to protect the environment as an existential threat to their growth. For 2020, the chief risk to Delta’s earnings forecast is any deterioration in US consumer health, he said.<br/>
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Delta said Thursday it is taking a minority stake in private aviation start-up Wheels Up, in a move that establishes one of the world’s largest fleets of private aircraft. Once the transaction is approved, which is expected in early 2020, Wheels Up will have a fleet of 190 planes and more than 8,000 customers, Delta said. “This groundbreaking partnership will democratize private aviation — making the convenience of private jet travel accessible to more consumers,” Delta CEO Ed Bastian said. He added that the agreement “is the latest step in Delta’s ongoing effort to build partnerships that extend Delta’s brand beyond its core business.” The company declined to disclose financial terms but said it expected no impact to its 2019 financial guidance. Delta will also hold an equity position in Wheels Up, which said in August that it had completed a $128m round of funding that valued the company at $1.1b. “It’s a way for us to extend our brand and our ability into a new space,” Bastian said.<br/>
Korean Air has appointed airline veteran Kee Hong Woo as its next president, taking the position previously held by current chairman Walter Cho. Among Woo’s responsibilities will be overseeing the new agenda set by Cho to address challenges facing the airline industry, Korean Air said. The president’s role has been vacant since Cho assumed the chairmanship of the carrier earlier this year. Woo has been at Korean Air for 32 years, and most recently served as head of the corporate strategy and planning division. During his time at Korean he has held positions in sales and marketing, and led the passenger business division. He has also held senior overseas positions for Korean Air, including vice president and head of the America’s region.<br/>