.jpg)
Written by Lisa Barrington and Rajesh Kumar Singh
DUBAI (Reuters) – Delta Air Lines is flying its largest ever transatlantic flight schedule this year, senior executives said on Saturday, as it sees strong demand for travel, especially on international routes.
Delta, one of the largest US airlines, expects record high revenues in the second quarter thanks to increased demand for travel in the spring and summer.
“Summer is going strong and demand is quite healthy,” CEO Ed Bastian told reporters.
“Demand is growing faster internationally than domestically, and Delta is very well positioned to capitalize on that with its partners,” Bastian added.
Delta says consumers are spending on travel experiences as a top priority post-pandemic.
Demand is particularly strong for premium travel, benefiting airlines like Delta.
“We have seen continued strength through the spring and into early summer… Our international business is very strong,” Delta President Glenn Hoenstine told reporters.
However, Rival American Airlines (NASDAQ:) said this week that there is still an excess of seat capacity in the domestic market, resulting in lower pressure.
U.S. airlines have plans to further moderate capacity in the second half of the year, which airline executives say will bolster pricing power in the industry.
Boeing
Delta operates a large mixed fleet that includes aircraft from Airbus and Boeing (NYSE:), which is suffering from a quality and corporate crisis.
Bastian said Delta is “encouraged” by the steps Boeing is taking regarding management changes and other adjustments at the company.
“I’m confident we’ll see improvement,” Bastian said, adding that Delta remains committed to its order for Boeing 737 MAX 10 aircraft.
Delta does not currently fly any version of the Boeing MAX but has 10 MAX planes on order for delivery next year. The Max 10 – a larger version of Boeing’s best-selling narrow-body aircraft – is still awaiting certification from the US Federal Aviation Administration (FAA).
A mid-air cabin panel explosion in January on Alaska Airlines Flight MAX 9 has put a question mark over certification.
Rival United Airlines has asked Boeing to stop production of its MAX 10 aircraft, and has converted part of its order to the MAX 9.
Delta has no plans “at this point” to replace the MAX 10 with another model, Bastian said, adding that he hopes the changes being made at Boeing will allow progress on building the MAX 10.
“We are scheduled to receive them next year, and I do not expect to see them for some time,” he said.
