Photographer: Bridget Bennett / Bloomberg
Photographer: Bridget Bennett / Bloomberg
Delta Air Lines Inc. CEO Ed Bastian reaffirmed the carrier’s goal of achieving a positive cash flow in the spring with the expectation of “getting a year back.”
He warned that travel demand would remain “depressed” at first, with the company’s focus on passenger health and safety. A “major” resumption of travel, especially for business, will come when vaccines become widely available, he said in a statement. memo marking the new year.
“As difficult as 2020 was, I expect in many ways that the next 12 months will be even more challenging,” he said, predicting that vaccines will mark the turning point of the industry. “While I hope this is a year of recovery, the continuing uncertainty of the pandemic means that we need to be nimble, ready to change our course and adapt to a changing environment. ever-changing. ”
Bastian finally confirmed the spring target for cash flow on December 8th.
Delta shares fell 31% in 2020, compared to the 16% gain in the S&P Index.
The U.S. travel industry is preparing for a rebound in demand when vaccines arrive. After months of deep discounts – with hotels offering great benefits and airlines hanging fares as low as $ 21 from New York to Florida – prices are ready to make up at least part of the price. land they lost.
Tour providers have lost capacity, so any benefits in booking will tend to increase rates. And as vaccines take hold, they are close to reducing the yield of pent-up vacation demand as people emerge months from being coached at home. That leads to hope within the industry for a rise in the spring and summer, even as rates remain depressing and recovering from distant business travel.
Carriers were also hampered by around Thanksgiving and year-end holidays, as passengers undergoing U.S. airport screening reached their highest levels since the outbreak began. -discharged.
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