Los Angeles International Airport, a scene from the Delta Sky Club on 2 September, 2022.
Aaronp | Bauur-Griffin | GC Picture | Getty images
Airlines have a bird scene about the economy, and CEO clouds are looking.
Delta air lines And Marginal airlines Draw them 2025 outlook Last week, an American economic photo and weak proximity is calling out demand,
Airline’s CEOs are warning about slowing down booking, including weak corporate journey, citing President Donald TrumpBusiness War, Mass Government Sorting, Low Canadian visitors And other countries, and recently, have increased skits about planning about value-sensitive consumer schemes as weak demand for domestic coach seats.
consumer sentiment Decline This month, according to a survey by the University of Michigan. The Bank of America said in a report on Thursday that the consumer spent in February and March to “good” the discretionary services like restaurants and tourism.
“I think we are acting as we are going for a recession,” CEO Ed Bastian of Delta said to CNBC’s “.Squalk box“On Wednesday.” I think everyone is going in a defensive posture. ,
This is a rapid change from the beginning of the year, when Bastian stated that 2025 was “” “”.Best financial year“In the history of the century old airline.
‘Living an uncomfortable life does not mean’
Now, in view of the airlines epidemic, a large driver of record revenue, rich holidays are doing more banking on passengers. They are hoping that they will continue to treat themselves on prisier, romere seats, despite the upheaval and an more related to the economic picture of the global market.
Budget travel icon Spirit Airlines used a cute line from the northern carolinian character of Parker Posi in “The White Lotus” in an advertisement for the carrier’s precious and room seats last week.
“I just don’t think at this age, I am to live an uncomfortable life,” the soul quoted it Instagram account Above one picture of its “Big Front seat”, which can be three times higher than the price of a standard seat in exchange for more legrooms and other allowances.
Airlines are hoping that other passengers share the spirit.
Over the years, carriers and credit card companies have been expanding the lounge of their luxurious airport. Airlines are also running to prepare their aircraft with more Premium seatingLike suites with doors. Air France and Lufthansa have recently unveiled new, huge first-class cabins, and demand is so high for the first phase-up-up-up-up-business seats, which have hundreds of parts and require regulatory approval, that it is Catching delivery Of new aircraft.
Delta and Frontier said that they are pulling back their development plans or even reduce capacity, especially for off-pack domestic visits in a few days of the week like Tuesday or Wednesday.
So far, authorities are more optimistic about expensive international routes and long-hall business class and premium economy.
“Domestic and especially the main cabin, both consumer and corporate travel, have the most pronounced effect of tenderness, Glenntestein said on an earning call last week, Glenntestein said on an earning call last week. “While there is no immunity in this environment, we see greater flexibility in international and our diverse revenue currents, including premium and loyalty, reflecting the inherent strength of our main consumer.”
Delta has already seen a premium economy on premium-segment revenue such as first-class seats or international long visits, which increases rapidly than the main cabin. Hauenstein says that this step is going to take.
The premium revenue continues “to widen the lead on the main cabin,” he said. “So we are expecting and yields will actually widen in this next quarter.”
United AirlinesWhich is the nearest rival of Delta, is a huge international network and has invested heavily in high-end renewal, lounge and attractive new Destination For the purpose of rich, Globe-trotting customerThe carrier will provide more insight into consumer trends when it reports quarterly results this week.
American, Southwest And other airlines report in next weeks.
‘Stars are aligning’
Even Airlines have high expectations for high-paying customers, problems in international travel.
Delta and United have said that they are withdrawing some of their Canadian-American flights, echoing comments from Canadian carriers US-Bound Travel Demand FallsA trend that is threatening to further widen $ 50 billion US international travel deficit.
According to the US Commerce Department, the non-US citizen visitor last month recorded a decline of about 4.5 million in the United States, about 13%, before the epidemic, and about 10% from last year.
Weak demand is determined to bring more deals, and the airlines have also run fare sales through late spring. But this can also mean cheap flights to popular international destinations.
“This is perhaps the best heat for a trip to Europe that I have seen for years,” said Scott Keys, founder of the travel deal site.
He said, “I don’t think there will be a lot of hope for this in 2022, 2023 and 2024.” “Stars are align to promote obstacles.”
