Delta enjoys higher bookings as consumers splurge on “delayed YOLO” experiences

Biscoff cookies and Coca-Cola… a match made in cabin. Delta unloaded first-quarter earnings yesterday. The Atlanta-based carrier posted a chunkier-than-expected loss, partly driven by extra costs like raises for pilots and employee bonuses. But Delta said it saw sunnier skies ahead, and forecast upbeat sales growth and profit for the spring.

• Booked Italian summer (in March): Delta projected record advance summer bookings as consumers continue to prioritize travel, planning trips months in advance.

• Champagne and free socks: First- and business-class sales (think: premium products) made up over half of Delta’s revenue as $4K splurges on bed-like seats beat out economy spending.

• Charge it to corporate: Delta said business-travel bookings have been rebounding, with US corporate sales in March at 85% of prepandemic levels.

• Cloudy: Still, Delta, JetBlue, and other airlines are dialing back growth plans and routes as airport labor shortages and congestion limit capacity.

Only 47 days left ’til check-in… Consumers are upping their travel spending, despite cutting back in other areas. While inflation has been steadily cooling, travel costs are still sky-high: US airline fares rose 4% from February to March, and are up 17% on the year. Spring break 2023 is expected to be the busiest travel season ever for airlines, and the TSA expects demand to keep soaring throughout the year. Last quarter, Delta’s advance cash bookings were up nearly 20% from prepandemic levels, and CEO Ed Bastian said he doesn’t see a pullback on the horizon.