Corporate travel calls for increased airfare from Delta

Published on : Monday, January 16, 2017

DELTALOGO.5751895744924Delta is planning to increase their airfare in 2017 given the growing corporate demand and controlled capacity, as said during the carrier’s fourth-quarter earnings call.

 

 

According to the latest survey of the corporate customers, 85 percent planned to maintain or increase travel spend during the first quarter, Delta President Glen Hauenstein said. The demand to improve and yield the service rose immediately after the results of the U.S. presidential election in November.

 

 

Hauenstein continued in his statement that if the economy holds out as they have forecasted and business continues to travel, chances are that they will raise the fare. The opportunity to increase them on a year-over-year basis will get “better as we move throughout the year because the fares got to be so low for business travel by mid-year last year.” He added in his statement that the fares on major business routes are down 30 to 40 percent from historical levels, so increases will be a “journey, not a race.”

 

 

 

Delta also plans to continue expansion of its no-frills Basic Economy fare this year. Today, it covers about 40 percent of Delta’s domestic network, and the carrier plans to offer it across the entire domestic network by the end of this year and expand to international routes next year.

 

 

The net income of Delta in the 4th quarter declined 37 percent year over year to $622 million.

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