Delta Airlines passengers check in at Amsterdam Schiphol Airport in April 2023 (Photo by Simon Wohlfault)
The status of airlines as economic indicators has long been debated, but what Delta Air Lines President Glenn Hauenstein has made clear is that wealthy people are traveling abroad, especially to Europe. .
On Delta Air Lines' third-quarter earnings call Thursday and an investor presentation last month, Hauenstein talked about the growing appetite for travel, including revenge travel, which refers to making up for those trapped during the worst days of the pandemic. Ta.
One result is that September and October were once considered the “shoulder seasons” of reduced travel. That doesn't happen anymore.
On a conference call Thursday, JPMorgan analyst Jamie Baker noted that “a lot of Delta customers have obviously taken pretty lavish European vacations this year,” and whether they'll continue to do so this winter. Asked.
“What we're really excited about is a longer European travel season,” Hauenstein replied. “It's really moved away from the situation where it was primarily over the summer.” Now, the season runs “through November, through the holidays, into the new year,” he said. “And the reality is that right now we're only talking about six to eight weeks of downturn in Europe,” he said of winter.
Hauenstein noted that “most people didn't expect” the reservations to continue. “We reduced our schedule in the fall and winter. But as we head into November, December and January, our year-over-year growth is actually accelerating heading into winter.”
Delta Air Lines recorded gains in all international regions, including the Pacific and Latin America. International sales increased 35% compared to the same period last year. Domestic revenue was $8.7 billion. Transatlantic revenue was $3.1 billion, Latin America $788 million and Pacific $559 million.
Hauenstein said on a conference call with investors last month that airline customers, especially Delta customers, are affluent, saying, “Our customers are typically those with median household incomes over $100,000. , their savings remain at record levels,'' he said, noting that travel is their asset. It's a top priority, he said. “So people say, 'When will this journey of revenge end?' I think there's still a long way to go, but for our customers he will work well until 2024. ”
High-income travelers account for 75% of spending on air travel, according to data compiled by Delta Air Lines, which defines high-income households as those with an annual income of $100,000 or more. According to the Census Bureau, the median household income in the United States in 2022 was $74,580.
Last month, Delta Air Lines announced an expansion of its 2024 Europe schedule, building its largest-ever schedule to Europe in summer 2023. This includes new service from New York Kennedy to Naples, Shannon and Munich, and new service from Atlanta to Zurich. Delta also plans to increase flights on its three hubs to Paris, as well as on its Atlanta-Venice, Boston-Athens, Detroit-Reykjavik and JFK-Barcelona routes.
“Despite continuing economic doubts on the way about a possible recession, demand for international travel remains the same, with record summer schedules to Europe set for second year Continuing,” Delta said. Spokesperson Drake Castaneda.
“The fact that the company has scheduled a better schedule for next summer than this summer shows that demand trends for the experience economy remain strong,” he said.
United Airlines leads its competitors in transatlantic flights, with its summer 2023 schedule offering 75 routes and 96 departures per day during peak hours. The 2024 schedule has not yet been announced. Meanwhile, American Airlines announced in August that it would add service to Copenhagen, Nice and Naples next summer.
