Delta Air Lines Revenue Soars as Consumers Still Feel Travel Bug

Inflation hasn’t kept consumers from traveling if Delta’s earnings are any indication.

The airline had the highest quarterly profit and revenue in its history, as concerns about the economy haven’t translated to a drop in the desire among consumers to travel, it said in a Thursday (July 13) earnings release.

“Premium travel is the No. 1 priority for the consumers that we target,” said Delta CEO Ed Bastian, per a Thursday report by The Wall Street Journal. “They’re not interested in buying houses or cars or boats or electronics, but they are interested in traveling.”

Delta President Glen Hauenstein said in the release that “robust” demand is continuing into the current quarter, with airlines anticipating similar revenues.

Revenue for the quarter that ended in June was $15.6 billion, according to the release.

Delta’s observations about American travel line up with PYMNTS’ research showing that leisure travel is one of the last discretionary purchases consumers want to give up in their ongoing battle against inflation. The search for escape is part of the reason spending on experiences, like lodging and travel, has seen double-digit growth this year.

But not all consumers are traveling by air, thanks to high ticket prices and the complexity of finding flights amid budget airlines’ route experimentation. Instead, they’re opting for road trips, as Jennifer Young, co-founder and chief marketing officer of digital RV marketplace Outdoorsy, told PYMNTS earlier this month.

“When we look at summer 2023 against 2022, which was a record summer for us, we’re currently outpacing it,” she said. “Overall, revenue is up, and bookings are up. The growth is fueled by our first-time bookings, as 76% of all Outdoorsy bookings are now first-time bookers.”

She added that her company had benefited from the “bleisure travel” trend, blending business with leisure vacations, as some people may not be able to completely get away from it all even when getting away.

“We’re starting to see a lot of people that are booking trips in nonweekend periods of time,” she said. “They’re booking a trip on Thursday, Friday, and the inference is for work, and then enjoying that weekend in a new location and getting a little bit of leisure and vacation time in the same week.”