Delta, American Airlines see demand slow - and fear is to blame
A string of crashes have led travelers to be weary of flying.
Transcript:
Caroline Woods: Travel demand is down and while there are a host of factors contributing to the pullback, one stands out more than the rest: fear. After a fatal American Airlines crash in January and a Delta flight flipping upside down upon landing in February, flyers are opting not to fly.
Speaking at the JPMorgan Chase Investor conference, Delta CEO Ed Bastian said “We saw a pretty immediate stall in both corporate travel and bookings. Consumer confidence and certainty in air travel started to wane a little bit as questions of safety came in.” Bastian did not reveal just how much ticket sales have slowed.
Related: Delta CEO sounds alarm about industry travel shifts
American Airlines was forced to cut its revenue outlook for the quarter in the wake of a fatal crash in Washington D.C. The airline expected a 3 to 5 percent increase from a year ago, but now expects revenue to remain flat. But CEO Robert Isom said fear isn’t the only reason for the slowdown. He said economic uncertainty is also playing a big part in the falling demand.
The National Transportation Safety Board has yet to determine causes for either crash.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Caroline Woods with TheStreet.
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