Coronavirus Travel: Delta Expects Less Business Even As Pandemic Restrictions Recede

As several states start to discuss the easing of restrictions in the wake of the coronavirus pandemic, Delta Airlines is keeping its optimism in check. In an earnings call Wednesday, company officials expressed skepticism that the industry would return to its previous level anytime soon.

“We believe that it could be up to three years before we see a sustainable recovery,” Delta CEO Ed Bastian said during the conference call.

Delta's president Glen Hauenstein also gave a grim outlook for the airline’s first-quarter performance, with passenger counts down by 95% and revenue down by 90% as only those who absolutely must fly continue to do so. Due to the intense economic downturn, Delta has reported its first loss in the first quarter in five years.

“We're bumping along the bottom here,” Hauenstein said about the company’s dismal recent performance.

With 650 aircraft currently parked, Delta, along with the rest of the industry, plans to scale back their operations until such time as things return to normal and most people feel comfortable flying once more. In a bid to gain back that consumer confidence, the company has stepped up its sanitary practices in a big way.

“We've doubled down – in fact, tripled down – on sanitation and hygiene [and] cleanliness,” Bastian said in an interview with CNBC.

Delta, and other major American companies, have been granted portions of a $25 billion fund from the government meant to help them continue to pay employees until Sept. 30.

“We don’t know when it will happen, but we do know that Delta will be a smaller airline for some time, and we should be prepared for a choppy, sluggish recovery even after the virus is contained,” Bastian said in a note to employees. “I estimate the recovery period could take two to three years. I hope it’s sooner, but we need to be realistic in our planning.”