Delta reports record summer travel bookings despite higher fares

Delta has reported record advanced bookings for this summer amid surging demand for travel despite wider economic worries weighing on consumers.

The world’s largest airline said revenue was up 45% from 2022, to $11.8 billion, and up 14% from the same period in 2019, before the Covid pandemic.

“Consumers are anxious to travel,” said chief executive Ed Bastian.

Revenue for premium cabins such as business and premium economy grew faster than for the main economy cabin in the first quarter, he said.

Strong demand also means higher fares and fewer empty seats; the Atlanta-based carrier’s seat revenue per mile was up 17% compared to both a year earlier and the same period in 2019.

Airlines are using surging demand for Covid-delayed travel as a way of mitigating the impact of rising wage costs and fuel bills, by putting up fares.

Bastian said there was no sign that higher prices had put off customers. Delta recorded the 10 highest sales days in its history last month and had been able to protect its pricing power despite adding capacity, he said.

The company expects its revenue in the June quarter to rise 15% to 17% from a year ago on capacity growth of 17%.

“We’re growing supply at that level and not seeing a deterioration in the overall revenues,” Bastian said. “It’s unusual in our industry.”

Reuters contributed to this report.