Delta Airlines see a return take-off in leisure and business travel

 

Delta Airlines said in a statement Wednesday that the worst of the business and leisure travel slump is behind us. That is because the airline saw an increase year-to-year in November with corporate ticket sales.


Although suit and tie passengers are returning to first-class with their fine wines and warm towel service, it should be noted that business travel remained down by roughly 10% in October.


Since the global collapse of business travel a year ago, which is the most profitable segment of the airline industry, the airlines have suffered from huge losses.
Delta lost about 50% of their first-class revenue by April this year.

 

It has since then gradually gained back some of those customers. The airline believes premium revenue will return likely by the first half of 2010. Delta expects breakeven operating margin in the fourth quarter of 2009, with $5.1 billion of liquidity at the end of the year.


To make up for the massive loss of first-class customers, pretty much every airline cut capacity to help ease the pain until the economy bounces back. Until that time comes, and it hasn’t just yet, you can expect far less routes and even more full capacity planes.  


Are you traveling more this year than last year? Tell us how this economy has affected your travel habits. While some travelers are reveling in all-time low fares, many others have put off travel until things start to look economically healthier.

 

Source: Reuters

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