Delta Posts Record Revenues as Corporate Travel Bounces Back

10.04.2024 - 17:37 / skift.com / Delta Skymiles / Glen Hauenstein / Ed Bastian / Delta Air Lines / Paris Olympics / Meghna Maharishi

As the airline industry grapples with delayed aircraft orders and rising operating costs, Delta Air Lines has stayed above the fray. 

The carrier not only posted a narrow profit during what’s typically a sluggish quarter for airlines, but travel demand across the board remains strong. 

Delta president Glen Hauenstein said in a call with analysts Wednesday revenues for premium seating were up 10% compared to the same time last year, and corporate travel, which has struggled to bounce back post-pandemic, is now making a comeback.

Hauenstein said based on a survey the carrier conducted, 90% of companies that responded intend to increase travel in the second-quarter, setting Delta up to deliver record corporate revenues in the latter half of the year. 

The Delta president added that corporate travel sales were up 14% in the first-quarter, with the technology, customer service and financial services industries leading the increase. 

Delta also saw record revenues for domestic travel, which was up 5%, during the first three months of 2024. International travel revenues were up 12% in the first-quarter, showing the consumer appetite for international travel hasn’t waned. However, Hauenstein said transatlantic growth was “muted” due to the carrier’s investments in rebuilding its presence in Latin America and the Pacific.  

And while Delta expects to see strong transatlantic demand in the summer, it isn’t betting on a boost from the Paris Olympics. Hauenstein said the carrier anticipates business travel in the Paris region will decrease closer to the Olympics. 

“Well, generally, the Olympics are not good for airline revenues,” Hauenstein said on the call. “And this year, I think, is no exception to that.”

Delta’s co-branded credit card with American Express has been a major source of revenue for the airline. The credit card is so important to Delta’s operation that CEO Ed Bastian has previously told investors that around 1% of the U.S. economy is spent on Delta’s credit card. 

AmEx recently rolled out new benefits to the co-branded card, but is also charging a higher annual fee. Some of these benefits include more credits for flights, restaurants and rideshare apps after spending a certain amount. Users of higher-end credit cards also receive $2,500 in “medallion qualifying dollars” to get them closer to reaching elite status with Delta SkyMiles. 

Those higher annual fees haven’t deterred any new sign-ups. Hauenstein said Delta saw a record number of applications for the credit card and is “seeing the highest premium acquisition mix in our program’s history.”

Hauenstein added that loyalty revenue for Delta grew by 12% on the strength of the AmEx partnership. Delta also received $1.7 billion in remuneration