Delta CEO sees US business travel recovery by summer 2022

Delta expects US corporations to reopen for business no later than Labor Day and resume domestic travel at levels from before the pandemic by July of next year. Domestic travel is at about 30% of 2019 levels but will quickly rebound once workers return to offices, CEO Ed Bastian said Thursday. Trans-Atlantic travel will begin to return in the second half, and other long-distance trips next year, he said. “No one is going to be waiting for the government to say now is the right time to travel,” Bastian said at a Sanford C. Bernstein conference. “Businesses are going to be making those decisions and pushing their people out on the road, and I think there’s going to be a renaissance of business travel in our country.” Corporate demand is particularly important to Delta, which reaped about 50% of its passenger revenue from business customers in 2019. International corporate travel is especially lucrative. Air travel was nearly wiped out in the early months of the coronavirus pandemic, with demand recovering in fits and starts since then. While Bastian continues to expect that videoconferencing will reduce corporate travel 20% to 30%, “that doesn’t mean the overall volume” will be at the same level. Business travel eventually will be in line with figures from before the pandemic, he said. “The mix is going to change, the nature of the travel is going to change,” Bastian said. “These tools are going to be a complement to business travel going forward. They’re not going to be a substitute for business travel.”<br/>