Delta issues warning over plane seats as it makes cuts
Delta, specifically, is axing unpopular trips such as flights on Tuesdays and Wednesdays and trips with unusual takeoff times. Delta hopes the trip trimming will help in consolidating main cabin travel on popular flights and boost revenue.
The goal was announced after Delta's main cabin revenue fell 5 percent during its second quarter, while its premium revenue grew by 5 percent. 'I've been in this business quite a long time, and I've really never seen that amount of capacity come out in a non-recessionary environment,' Hauenstein said. 'And I don't think anybody is predicting that we're in a recession.'
The news of the trip slashes comes after the company launched its first nonstop flight route connecting Utah to Asia. Delta's $15.51 billion in second quarter revenue beat Wall Street's expectations even though some travelers vowed to switch to Spirit.
The company is in the process of modernizing its aircrafts and hinted at the possibility of adding in-flight gambling. Its also hard at work in creating its new environmentally friendly aircraft through its partnership with JetZero, which is scheduled to take flight in 2027.
United Airlines is coming for Delta when it comes to futuristic jets now that it has agreed to buy up to 200 planes from JetZero. The deal finalization for the new JetZero Z4 planes comes after United finished its first quarter with $13.2 billion, the best performance during that period in five years.
Experts predict the airline industry will continue to be unpredictable, amid changes to travel habits and economic headwinds. Annual revenue has grown and passenger numbers have bounced back from the pandemic. However, fears of recession and tariffs have made an impact on carrier operations. These factors, along with the decline in international travel, has led to airlines slashing their 2025 outlooks.
'We are concerned that the new economic paradigm causes another structural leg down in corporate travel while the negative wealth effect further dampens consumption, especially by Baby Boomers,' TD Cowen wrote in April. Despite the changes and concerns, the International Air Transport Association (IATA) is expecting this year to be successful. 'The first half of 2025 has brought significant uncertainties to global markets. Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections,' said director general Willie Walsh. (Pictured: Glen Hauenstein, President of Delta Air Lines)
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