TRAVELLERS SHRUG OFF BOEING WOES

Strong demand heading into the summer-vacation season is an indication that travellers seem unfazed by recent incidents in the industry that ranged from a panel blowing off a jetliner midflight flight to a tire falling off another plane during takeoff, according to the head of Delta Airlines.

If travellers are worried about a spate of problem flights and increased scrutiny of plane maker Boeing, “I haven’t seen it,” Ed Bastian said, adding, “I only look at my numbers. Demand is the healthiest I’ve ever seen.”

Delta reported the highest revenue for any first quarter in its history and a US$37-million profit. It expects record-breaking revenue in the current quarter as well. The airline said that second-quarter earnings will likely beat Wall Street expectations.

Bastian noted that Delta’s best 11 days ever for ticket sales occurred during the early weeks of 2024.

A slight majority of Delta’s fleet of more than 950 planes are Boeing models, but in recent years it has bought primarily from Airbus, including a January order for 20 big Airbus A350s. As a result, Delta will avoid the dilemma facing rivals United Airlines and American Airlines, which can’t get all the Boeing planes they ordered. United is even asking pilots to take unpaid time off in May because of a plane shortage.

The airline also reported that large corporate customers – who were slower than leisure travels to resume flying after the pandemic – are spending more on travel, including firms in technology and financial services.

Delta has boosted profit by focusing more on premium passengers who pay the highest fares, and raking in money from a credit-card partnership with American Express.

Costs could rise too, however. Jet fuel is higher than it was a year ago, following a run-up in oil prices, and Delta is spending more on aircraft maintenance this year.