Delta Kicks Off 2018 with Rosy Corporate Revenue Outlook
Friday, 12 January 2018 16:07
PDF Print E-mail

Delta closed out 2017 with its strongest corporate revenue growth in years and expects that momentum to continue this year, executives said in the carrier's fourth-quarter earnings call.

Both a higher volume of corporate travelers and higher fares paid by those travelers pushed fourth-quarter corporate revenue up by the highest percentage since 2014, Delta president Glen Hauenstein said. According to a recent survey by Delta, more than 88 percent of corporate travel buyers expect to maintain their spending or increase it this year. That's up 3 percentage points year over year and "the most positive outlook we've seen in three years," he said. The recent U.S. tax bill, which significantly lowered corporate tax rates, seems poised to push demand up further in the first quarter, though Delta has not yet seen effects on corporate demand materialize.

Even so, corporate fare growth has moved "a few percentage points higher than the trough, so there's a lot of opportunity going forward as demand continues to improve," Hauenstein said.

Read more in Business Travel News.