Airlines Reporting Lower Demand, Revenue Due to Delta Variant

Airlines Reporting Lower Demand, Revenue Due to Delta Variant

DONALD WOOD | TravelPulse.Com

Troy Warren for CNT #Travel

 

Several major airlines in the United States announced Thursday that the rising number of COVID-19 cases caused by the Delta variant has hurt bookings and is impacting the travel industry’s recovery.

According to The Associated Press, officials from American Airlines reported a drop in demand that started in August has continued into September, with the carrier lowering its third-quarter revenue outlook.

Delta Air Lines CEO Ed Bastian recently said that while the carrier still expects an adjusted pretax profit for the third quarter, revenue will be lower than expected. The CEO also revealed business and international travel have been impacted the most, but he believes the rising number of cases won’t derail travel’s recovery, only delay its eventual bounce back.

Southwest Airlines officials said the demand for leisure travel has weakened, with more cancellations and softer bookings for September and October. The carrier revealed demand for winter holiday travel appears to be on course with previous projections.

As for United Airlines, the company announced demand and revenue are both weaker than previously expected, with the carrier forced to cut its schedule for later this year to match the lower number of bookings.

United officials forecasted a third-quarter pretax loss that could extend into the fourth quarter if the virus outbreak continues.

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By troywarren

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