"Corporate is back," Delta Air Lines CEO Ed Bastian said Wednesday morning on CNBC, noting the end of extended airport security wait times now that Transportation Security Administration employees are getting paid. "Now that the airports are back and lines are at normal levels, the corporate traveler is back. This week alone, sales of corporate travel are double-digits again."
Bastian didn't specify what he meant by that metric. Delta chief commercial officer Joe Esposito on Wednesday during the carrier's first-quarter earnings call said that for the period, "corporate sales grew [by a] double-digit [percentage year over year] and set a quarterly record. … Corporate and consumer demand continues to be strong even as we pass through higher fuel" costs.
Corporate performance improved throughout the quarter with growth across all sectors, led by banking, aerospace and defense, and tech, according to a Delta release. The carrier also noted that its recent corporate survey indicated "85 percent of respondents expect their corporate travel spend will increase or stay the same in the June quarter." Further, "corporate demand for premium products was particularly strong."
Esposito noted that most corporate travelers "are not in the basic products. … They're more in our full-fare or premium products," he said.
Premium revenue in Q1 was up 14 percent year over year, according to Delta.
In response to an analyst question about capacity for corporate customers, Esposito said that "we have plenty of seats for where in the booking curve those customers want to book in all cabins. … We generally always have seats for our closer-in, higher-demand consumers."
Corporate demand on the U.S. coasts also has been "very strong" in the first quarter, Esposito said. "Some of our biggest clients are in the New York, Los Angeles, Boston, Seattle type markets."
Delta also "gained share over this past year as well as this past quarter corporately," Bastian added. "We're not seeing any signs of weakness at all."
In addition, Bastian commented on potential industry consolidation, noting higher fuel prices drove mergers and acquisitions 15 to 20 years ago.
"You have a considerable portion of the industry that has not returned its cost of capital, has not made a profit in years," he said. "I anticipate higher fuel prices will cause much more significant structural reform than we've seen over this period."
Delta Q1 Metrics
Delta reported first-quarter passenger revenue of $12.3 billion, a 7 percent increase year over year. Total adjusted revenue was $14.2 billion, up 9 percent for the period and was led by premium, corporate and loyalty, according to Delta. The adjusted net income for the first quarter was $423 million compared with $291 million a year prior.
Capacity increased 1 percent year over year in Q1. The unadjusted average fuel price was $2.78 per gallon. Delta's fuel expense for the quarter increased $332 million or 14 percent compared with Q1 2025.
Delta projects total second-quarter revenue to increase in the low-teens percentages on flat capacity growth as the carrier "meaningfully" reduces planned capacity. The carrier also as of April 2 projected an "all-in fuel price" of $4.30 per gallon for Q2. Delta's refinery is expected to provide about a $300 million benefit to the second quarter at current prices, according to Janki.
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