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Delta CEO predicts business travel comeback with two key metrics

Delta CEO Ed Bastian has spent much of 2021’s Q1 talking about the “year of recovery” to come. Buoyed by the hope that vaccinations will restore consumer confidence in aviation and give fuel to the fire of pent-up demand, he is preparing to turn a profit by midyear—something that’s sorely needed after record losses of $12.39b in 2020. The company saw improvement at the end of last year: It slashed its cash drain in half from the third to fourth quarter, and Q4 net losses of $755m paled in comparison to those of American and United—both around $2b. But Delta and its competitors still expect a bumpy road ahead. “It’s always darkest before the dawn, and that’s exactly where we are,” says Bastian. He expects the US to reach some initial stage of herd immunity in the early summer, barring the emergence of vaccine-resistant mutations of Covid-19. “That will be the key to getting travel going—though it will just be one stage, one meaningful step, as we build back to a new normal.” The same milestone, he says, may be the trigger that allows Delta to reopen bookings for middle seats, which it has blocked for social distancing throughout the pandemic. Another meaningful step, he says, will be the reopening of international borders. “Specifically in Asia, they will be very conservative [about this],” says Bastian. “But in 12 to 18 months, I believe international travel will be back.” That’s a while to wait. But the upside, he explains, is that travelers will return to find the aviation industry improved in many ways. The pandemic and the events of 2020 have led companies and their leaders to reinvent themselves with an eye toward sustainability, resiliency, and inclusivity—inspiring industry-wide improvements that will far outlast Covid-19. “We have to set the stage for the next generations that will follow me and follow us,” says Bastian, framing sustainability efforts as both moral and economic imperatives. “You can’t have a business opportunity and platform for growth if the world does not see your product and service contributing to society.”<br/>

KLM takes delivery of first Embraer 195-E2 jet

KLM has taken delivery of its first Embraer 195-E2 jet for its Cityhopper subsidiary, via lessor ICBC Aviation Leasing, as the carrier continues its fleet renewal with more efficient regional aircraft. The airline is taking a total of 25 of the E2s, up from 21 previously, leased from ICBC (10) and Aircastle (15), with KLM recently exercising four of 14 options. The four aircraft will come from Aircastle’s exisitng orderbook, the Brazilian airframer said on 23 February. “The new E2 is really going to make a difference,” says Warner Rootliep, managing director of KLM Cityhopper. “The addition of the E195-E2 to our fleet is a vital part of our plan to reduce our carbon footprint at least 50% per [passenger-kilometre] by 2030... The E195-E2 is not only an economically attractive aircraft, it also fits perfectly within our sustainability initiative... We are now, more than ever, committed to reducing the impact of our environmental and ecological footprint. Fleet renewal is currently the largest contributor to CO2 reduction.” KLM has committed to ambitious environmental goals, and last month completed a commercial passenger flight powered partly by sustainably produced synthetic kerosene made from renewable sources.<br/>