It’ll take at least two years for air travel to recover

Yet again, Delta Air Lines posted massive quarterly losses — and the company is warning investors “it may be two years or more” for air travel demand to return to normal.



a fighter jet sitting on top of a runway: MARANA, ARIZONA - MAY 16: Decommissioned and suspended Delta and jetBlue commercial aircrafts are seen stored in Pinal Airpark on May 16, 2020 in Marana, Arizona. Pinal Airpark is the largest commercial aircraft storage facility in the world, currently holding increased numbers of aircraft in response to the coronavirus COVID-19 pandemic.  (Photo by Christian Petersen/Getty Images)


© Christian Petersen/Getty Images
MARANA, ARIZONA – MAY 16: Decommissioned and suspended Delta and jetBlue commercial aircrafts are seen stored in Pinal Airpark on May 16, 2020 in Marana, Arizona. Pinal Airpark is the largest commercial aircraft storage facility in the world, currently holding increased numbers of aircraft in response to the coronavirus COVID-19 pandemic. (Photo by Christian Petersen/Getty Images)

The airline posted a $2.1 billion operating loss in the third quarter, excluding special items like charges for buyout packages for employees who voluntarily left the company and early retirement of aircraft. Including those items, its net loss topped $5 billion for the second consecutive period.

The third-quarter loss was larger than forecast by Wall Street analysts, and Delta shares fell 3% in premarket trading on the news.

Analysts expect total losses among US airlines to top $10 billion for last quarter, as the pandemic continues to fuel a huge drop in demand. Delta is the first US airline to report results for the quarter.

Delta’s revenue also fell 79% compared to the year-ago period. As bad as that is, it’s an improvement from the 88% drop in the second quarter.

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Delta Says Air Travel Recovery Still Far Off Amid Pandemic

Delta Air Lines Inc.


DAL -0.52%

offered cautious optimism that demand for travel is starting to return but said its losses were mounting, as the coronavirus pandemic looks likely to continue weighing on travel for years.

“The virus has had a much broader impact over the course of the year than any of us were suspecting,” Delta Chief Executive Ed Bastian said in an interview.

Delta had hoped it would be able to stop bleeding cash by the end of the year. Now the airline anticipates such a scenario won’t happen until spring, even while slashing costs. Delta ended September burning through $18 million in cash a day but expects to cut that to $10 million a day by the end of the year.

However, Mr. Bastian said: “We’re seeing a steady progression and steady improvement.”

Airlines have been overly optimistic before. Persistently high infection rates and the resulting restrictions on travel and business cut short the beginnings of a summer resurgence.

Delta has taken a further blow because of its emphasis on business travel, which has all but halted and has been slower to resume than travel for leisure. Delta had spent years wooing more premium travelers and securing higher fares from fliers with improved service, making the airline particularly vulnerable to the pullback among corporate fliers.

Delta has built a war chest that it has said should help it survive a long downturn. The airline ended the quarter with close to $22 billion in liquidity and said it has slashed costs. Delta had spent years paying down debt before the pandemic hit, putting the airline in a better position than some rivals.

On Tuesday, Delta reported a net loss of $5.4 billion for the September quarter, compared with a profit of $1.5 billion a year earlier, with sales down 76% at $3.1 billion.

After an unprecedented drop in air travel due to the coronavirus, passenger airlines are being forced to make long-term, make-or-break decisions at a time of great uncertainty and minimal cash flow. So how are they planning to survive? WSJ finds out. (Originally published July 31) Composite: George Downs/The Wall Street Journal

Delta and other airlines have spent months trying to set passengers’ minds at ease so people will feel safe flying. The airline has said it would continue limiting the number of people who can travel on a flight into early January, including blocking middle seats.

Passenger volumes have been grinding higher, albeit slowly and on a rocky course. The number of travelers passing through U.S. airports rose to its highest level since mid-March this week, while still down more than 60% from a year ago.

The airline is starting to restore flying to meet the “slow and steady” build in demand, Delta President Glen Hauenstein said in a statement. However, he cautioned that a return to a normal revenue environment could take two years or more.

While business travel has lagged, it may be starting to show signs of life, Mr. Bastian said. Revenues

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Air and Hotel Travel Packages Guide – What Kind of Booking Strategy Would Be Right for You?

When evaluating air and hotel travel packages offered by internet travel vendors, it’s crucial that you investigate all of the details before you book. Many of these offers are legitimate and do allow for some savings. You just need to take the time to compare offers and prices to make sure you really are getting a great deal.

If airfare and hotel accommodation are your primary concerns, you probably won’t need an “all-inclusive” package, unless it seems to offer things you know for sure you’ll really be using, such as fast Wi-Fi and dining discounts at your favorite restaurant(s). Some “bundle” deals also include car rental, in addition to air and hotel. You can combine any of the two or all three when you book your trip online.

Oftentimes it’s recommended that you wait for a last minute deal to become available before making reservations. If you’re not picky with the dates, this might be a good option for you. If you can only travel on specific dates, however, it might be a bad idea to risk it. What if a last minute deal doesn’t pop up and you are left without a reservation since you waited so long?

When you simply cannot be flexible with the travel dates, booking air and hotel travel packages well in advance is a smart thing to do. Find out how much travel expenses cost for your destination during the time of year you plan to travel. The tourist season varies depending on the location, although rates in most places are reasonably low during winter months (aside from Thanksgiving / Christmas / New Years).

Air and Hotel Packages Inclusions and Exclusions

Make sure you know exactly what the package does and does not include. Even an all inclusive package doesn’t cover things like airport baggage handling, spa services, off-site activities and tours, and gift shop items. Tipping may or may not be included, so read the policy beforehand.

Air and hotel travel packages tend to have minimum stay requirements. This could be anywhere from two nights to seven nights. Keep this in mind if your vacation dates are set in stone and there is no room for flexibility. Also note that the price you are presented with when viewing a travel package is usually intended per person. Do the math to find out if it really will be cheaper than buying 2+ plane tickets separately from the hotel room.

If you live near more than one airport, see if there is a price difference in air and hotel travel packages between all of the airports you can easily get to. Even if they are in the same state or region, some of the packages might be cheaper than the others.

The simplest and fastest way to find air and hotel travel packages is by looking over online deals. You can also sign up to receive alerts on all of the newest deals on dream vacations, from cruises to all-inclusive Caribbean resorts.…

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Cheap Air and Hotel Packages Info: A Look at Vacation Deals and What They Offer

Some people are after last-minute deals and some like to plan ahead. Whichever category you belong to, it only takes a bit of patience and research to find cheap air and hotel packages. Internet travel sites have made it easy for the average traveler to choose their own adventure and book their own itineraries. There is always room for flexibility in a vacation package.

Every airline has some hotel partners, so there are plenty of options available if you want to combine airfare and hotel reservation. You might also want to consider adding car rental to the package. How does a three night stay + airfare to Punta Cana sound? Or international airfare + budget hotel stay in Barcelona sound? There are a wide variety of packages to choose from.

Cheap air and hotel packages are sometimes (but not always) available at the last minute. If a hotel still has a bunch of rooms to fill in the nights ahead, it might lower the price considerably as an incentive for tourist to book with it. It’s the same with many airlines. Airlines don’t always overbook. Every now and then they actually face an under-booking problem. If a lot of people are cancellation their airfare at the last minute for whatever reason, the airline will have no choice but to offer them up at a discount in order to get more people to book as soon as possible.

Vacation packages are often tailored with a particular theme, like romantic getaways, outdoor fun, sports, family-friendly activities, LGBT-friendly trips, cruises, skiing, etc. There are also all-inclusive vacations at the giant resorts. If you’d prefer to create your own itinerary, just stick to basic cheap air and hotel packages.

Get Transportation in Your Cheap Air and Hotel Packages

Don’t forget about ground transportation. Depending on the destination, you might not want to drive around yourself everywhere. If a rental car is out of the question, make sure your package includes a hotel that is close to the airport you will be flying into. If you do want to rent a car, the rates are usually cheaper at off-airport locations. Renting a vehicle right at the airport is usually more expensive.

Make sure you don’t overlook anything when reading the terms and conditions. Know what the cancellation policy is like before booking. Only consider buying cheap air and hotel packages from renowned travel discount sites that offer customer service 24/7. Sites that have Plus memberships are definitely worth using because they offer reward programs.

Online discounts are some of the best, and you can always count on travel websites to offer good customer service. Be sure to join membership programs so that you can earn points. No matter what kind of vacation you are interested in, there are plenty of cheap air and hotel packages to choose from.…

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