Lisa Barrington and Rajesh Kumar Singh
DUBAI (Reuters) – Delta Air Lines is running its biggest transatlantic schedule in history this year as it sees strong demand for travel, especially on international routes, executives said on Saturday.
Delta, one of the largest U.S. airlines, is forecasting record-high second-quarter revenue thanks to buoyant demand for spring and summer travel.
“The summer is picking up steam and demand is quite healthy,” CEO Ed Bastian told reporters.
“International demand is growing faster than domestic demand, and Delta is very well positioned to take advantage of this with its partners,” Bastian added.
Delta says that post-pandemic, consumers are spending money on experiences and travel is becoming a top priority.
Demand is especially strong for premium travel, which benefits carriers like Delta.
“We’ve seen continued growth through the spring and early summer…our international business is quite strong,” Delta President Glen Hauenstein told reporters.
However, rival American Airlines (NASDAQ:) said this week that there remains a glut of seats in the domestic market, leading to discounting pressure.
U.S. carriers plan to further reduce capacity in the second half of the year, which airline executives say will underpin the industry’s pricing power.
Boeing
Delta operates a large, mixed fleet of Airbus and Boeing (NYSE:) planes that is beset by quality and corporate crises.
Bastian said Delta is “encouraged” by steps Boeing is taking to shake up leadership and make other changes at the company.
“I’m confident we’ll see improvement,” Bastian said, adding that Delta remains committed to fulfilling its order for Boeing 737 MAX 10 aircraft.
Delta does not currently operate any version of the Boeing MAX, but has ordered MAX 10 aircraft that will be delivered next year. The MAX 10, the largest version of Boeing’s best-selling narrowbody jet, is still awaiting FAA certification.
The January explosion of a cabin panel on an Alaska Airlines MAX 9 plane has thrown certification into question.
Rival United Airlines asked Boeing to stop producing the MAX 10 for it and converted part of its order to the MAX 9.
Bastian said Delta has “no plans at this time” to replace the MAX 10 with another model, adding that he hopes Boeing’s changes will allow it to make progress on the MAX 10.
“We’re planning to have them next year and I don’t expect to see them for quite some time,” he said.