Delta’s maintenance team “has really done a very, very nice job of improving the overall reliability performance of the airline,” said Delta CEO Ed Bastian in an interview with The Atlanta Journal-Constitution. The airline’s on-time statistics are “not only back to the levels we were pre-pandemic, they’re even better now,” he said.
While other airlines have been struggling with delays in deliveries of Boeing aircraft on order amid the aircraft manufacturer’s safety challenges, Delta has continued to receive new aircraft it has had on order from Airbus.
That has helped Delta to deliver “solid results and an upbeat outlook,” according to Third Bridge senior analyst Christopher Raite in written comments.
The first three months of the year make up the seasonally slowest quarter for airlines like Delta.
But demand was still “really strong,” with good momentum into the summer, Bastian said. The airline has had its 11 highest sales days in its history so far this year.
“It gives you an indication of the demand strength that we see coming into the spring and summer period,” Bastian said. “And then on top of that, business demand has also stepped up nicely. We’ve seen close to a 15% increase in the level of corporate travel just since the start of the year.”
Bastian said that’s evidence of continued demand for Delta.
Last year, Delta angered many of its frequent fliers when it announced it would impose higher spending requirements to reach elite status and further restrict access to Sky Clubs, after complaints from customers about overcrowded clubs with long lines for entry.
But the company reported in its first quarter results that revenue from its loyalty program was up 12% year-over-year, with increased spending on Delta American Express cards and more premium card holders.
Bastian acknowledged that some customers may end up shifting from different elite SkyMiles Medallion levels – which include silver, gold, platinum and diamond levels.
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