Delta’s resumption of 100 flights hints at ‘growing optimism’

Delta Air Lines Inc. plans to restore 100 flights in June, providing a hint that travel demand may be poised to inch up after almost disappearing because of the coronavirus pandemic.

The additions — including flights from New York to Paris, and from Atlanta to Cancun — are based on “customer demand,” federal health guidelines and government travel restrictions, Delta said in a statement Monday.

The company cautioned that the schedule remains subject to change “due to the evolving nature of COVID -19.”

Delta and its rivals slashed flying, parked planes and relied on billions in federal aid as the virus’s spread prompted a 95-per-cent drop in U.S. passengers.

A full recovery is expected to take years — and Delta’s capacity this quarter will be 85-per-cent below last year’s level, including a 90-per-cent reduction on international routes.

As a result of evaporating demand, Air Canada announced Friday it will lay off more than half of its 38,000 employees next month as it grapples with the fallout from the COVID -19 pandemic. The airline estimates about 20,000 of its employees will be affected.

The layoffs, which will take place June 7, will affect a minimum of 19,000 staff and could go as high as 22,800.

Less than 24 hours after the airline announced its downsizing plans, Prime Minister Justin Trudeau said he’s willing to see what can be done to help the ailing company — but remained mum on details.

Speaking to reporters outside his Rideau Cottage home Saturday, Trudeau acknowledged the difficult situation facing airlines and the travel industry during the

COVID-19 crisis. But even as he offered reassurances that the feds would continue to work with companies and industries hardest hit by the crisis, exactly what help Air Canada can expect to receive from government remains unclear.

“We will have conversations with Air Canada as we will with airlines across the sector to try and see how the best way to get through this particular pandemic is,” Trudeau said.

Delta’s move to add flights on a handful of marquee routes suggests the potential for the beginning of a rebound.

We should all expect airlines to be making adjustments both up and down in the coming months ...

“For Delta, markets to Europe and the Caribbean are strong performers at this time of year so putting the capacity back into the market is a solid indication of their growing optimism,” said John Grant, an analyst at OAG Aviation Worldwide, a data provider.

“But we should all expect airlines to be making adjustments both up and down in the coming months as they respond to demand, further pockets of COVID -19 that may appear and the potential regulatory barriers to travel,” he said.

Delta surged nearly 14 per cent to US$21.86 at the close as travel-related companies rallied after an experimental coronavirus vaccine showed signs of promise.

A Standard & Poor’s index of major U.S. carriers posted a comparable gain as United Airlines Holdings Inc. jumped 20 per cent to US$23.82, poised for the biggest gain since March 24.