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/>
https://portal.staralliance.com/cms/news/hot-topics/2021-02-24/sky/delta-ceo-predicts-business-travel-comeback-with-two-key-metrics
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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/>
