CHICAGO (Reuters) – Delta Air Lines (DAL.N) expects its third-quarter revenue and flight capacity to be around 20% to 25% of last summer, with demand stalling amid a surge in COVID-19 cases and a sustainable industry recovery more than two years away.
“We’re at a stall right now,” Chief Executive Ed Bastian said on Tuesday.
Leisure demand that built up over June for travel to places like Las Vegas, Florida or New York has suffered due to fresh infections and quarantines, while growing to some mountain and international destinations.
Business demand will lag by 12 to 18 months as companies await a COVID-19 vaccine before feeling they can safely put employees back on the road, Bastian said, noting the realization that video calls can sometimes be more efficient.
That doesn’t mean business travel will disappear, but 2019 volumes may not return at scale.
“The number of trips that the average road warrior takes I’m sure is going to come down in certain cases,” he told analysts.
Shares were down 3.1%.
Delta cut the flights it planned to add in August to 500 from 1,000 as outbreaks accelerate.
The pandemic has forced airlines globally to park planes, cut costs and raise capital to stem losses.
Atlanta-based Delta stuck to its target to halt a daily cash burn, which hit $100 million at the start of the crisis but slowed to $27 million in June, this year though Bastian warned it will hinge on demand, which remains choppy and uncertain.
It sees the July burn rate steady at $27 million a day, with improvements as people feel more comfortable traveling.
Delta, the first U.S. airline to report quarterly results, posted a $2.8 billion adjusted net loss, or $4.43 per share, for the second quarter as passenger revenue plummeted 94% during a season that some analysts call the worst in aviation history.
It had $15.7 billion in liquidity at the end of June and has not decided whether to take a $4.6 billion secured loan under the CARES Act as it eyes other financing involving similar collateral.
It already received $5.4 billion in taxpayer funds to cover payroll through September.
Large U.S. airlines have warned of furloughs in October when the stimulus runs out, but Bastian said he hoped to avoid furloughs after more than 17,000 employees opted for buyouts.
Over 45,000 employees have taken varying short-term leaves.
Delta may continue blocking middle seats beyond September thanks to demand for comfort but warned it cannot make money filling only 60% of its planes.
“You can’t raise prices high enough, particularly when your competition isn’t blocking middle seats and has a lot more supply out there,” Bastian said.
Southwest Airlines (LUV.N) too is limiting seating capacity through September, but rivals American Airlines (AAL.O) and United Airlines (UAL.O) have added thousands of flights with all seats for sale on hopes of picking up leisure summer demand.
Delta is more geared toward business travel, but Bastian said its SkyMiles loyalty data showed business customers traveling for personal reasons and willing to pay a premium.
Delta, which had been expanding aggressively through international partnerships, wrote down $1.1 billion against its recent LATAM Airlines (LTM.SN) investment and $770 million against Grupo AeroMexico (AEROMEX.MX) after their Chapter 11 filings.
It also booked a $200 million charge against its stake in British airline Virgin Atlantic, which on Tuesday agreed to a private-only rescue deal.
Reporting and photo: Reuters
Atmosphere Core expands in South Asia with Atmosphere Living ultra-luxury residences
Atmosphere Core, a globally renowned name in hospitality, has announced the launch of Atmosphere Living as part of its continued expansion in South Asia. Headquartered in India, this new company will offer branded ultra-luxury residences with customised end-to-end amenities and indulgences, including coffee lounges, wine cellars, private transport, and bespoke concierge services.
The global branded residences market has experienced a remarkable 150 percent growth over the past decade, and projections indicate a surge in demand. With the real estate veteran Sandeep Ahuja at the helm as Managing Director, Atmosphere Living is strategically positioned to capitaliSe on this demand.
Atmosphere Living will focus on a conscious design philosophy. All properties will be built in harmony with the environment and will incorporate features such as smart recycling, efficient waste and water management, and green energy solutions.
Sharing his insights on the launch, Salil Panigrahi, Managing Director, Atmosphere Core, said, “Atmosphere Living will bring a distinctive offering to India, and is a brand to watch out for. It will combine Ahuja’s decades of experience, knowledge, and industry network in real estate with Atmosphere’s hospitality expertise, introducing unparalleled serviced residences in India.”
Positioned in major metropolitan areas, established second-home destinations, and undiscovered scenic locales nationwide, these projects will also present lucrative investment opportunities. Elite homeowners will have the option to lease their residences back to Atmosphere Living, allowing them to be rented out for income generation.
Sandeep Ahuja, Managing Director, Atmosphere Living, said, “There is currently a gap in the Indian realty landscape for ultra-indulgent serviced homes catering to affluent consumers. We aim to bridge this gap by curating serviced homes that offer indulgences such as entering homes using smart key cards, 24/7 butler services, fine dining, and co-working spaces, among others. Our ultimate desire is to enable our customers to experience a life of true luxury and exclusivity.”
A night of celestial wonders, luxury, and cosmic inspiration at Anantara Kihavah SKY Observatory by British astronaut Tim Peake
Anantara Kihavah Maldives Villas celebrated a historic milestone with the exclusive visit of the renowned British astronaut, Tim Peake. On the evening of November 2, Astronaut Peake hosted an exclusive space talk at SKY Observatory, the finest overwater observatory in the Indian Ocean, housing the most powerful telescope in the Maldives.
Perched gracefully over the pristine Maldivian waters, SKY Observatory provided an idyllic setting for this extraordinary event, complemented by a stunning sunset. The exclusive gathering attracted a full house of eager guests to a delightful evening that seamlessly blended science, luxury, and natural beauty.
The evening commenced with a lovely cocktail reception, where guests were serenaded by the soulful tunes of a live saxophone band. Attendees savoured exquisite cocktails and canapés as they eagerly awaited Tim Peake’s presentation.
Tim Peake’s talk unveiled his personal journey, where he shared his path to becoming an astronaut and narrated the rigorous training that astronauts undergo. He provided insights into life in space, the daily challenges faced by astronauts, and the awe-inspiring experiences he encountered during his
historic mission. He also offered a glimpse into his exciting future projects, leaving the audience both inspired and spellbound.
Following Tim’s presentation, an interactive Q&A session allowed guests to engage directly with the British astronaut. The audience posed thoughtful questions, deepening their understanding of astronauts’ unique experiences and the intricacies of space exploration.
The event was further enriched by the presence of the resort’s three SKY gurus, Hammadh Rasheed, Zunnoon Ahmed, and Ali Arushal, who conducted a stargazing session for the guests afterward.
The success of the event was evident in the overwhelmingly positive feedback from attendees, who left with a deeper appreciation for space exploration and a memorable evening to cherish.
The evening marked a significant moment in Anantara Kihavah’s history, showcasing the resort’s commitment to offering unique and memorable experiences for its guests. The presence of Tim Peake, a celebrated astronaut and highly accomplished author, added an extraordinary dimension to the resort’s already spectacular offerings.
Tim Peake is a renowned British astronaut who made history as the first official British astronaut to visit the International Space Station (ISS) and conduct a spacewalk during his six-month mission. He also achieved the remarkable feat of running the London Marathon from space. Beyond his extraordinary space endeavours, Tim is also a bestselling author with his most recent book Space: A thrilling human history published earlier this month.
An astronomer’s paradise, Baa Atoll in the Maldives, is one of the best places on earth to enjoy stargazing due to its proximity to the equator. Anantara Kihavah Maldives Villas promises a voyage of discovery on a private Indian Ocean Island, with Sky—an overwater observatory and luxury cocktail bar—providing guests a chance to sip champagne under the stars and explore the Universe.
Visit Maldives website adds atolls segment to showcase diverse regions
Maldives Marketing and Public Relations Corporation’s (MMPRC/ Visit Maldives) has added a new segment to the official Visit Maldives Website specified for atolls showcasing the diversity of the Maldives.
The segment, now live at atolls.visitmaldives.com provides in depth information regarding the different regions of the Maldives, divided by atolls, to refine the traveller’s experience, commencing with an in-depth exploration of Addu Atoll and Fuvahmulah Atoll.
With 26 atolls, the Maldives offers a wide array of unique accommodations and awe-inspiring travel experiences, and this informative section of our website will serve as a gateway to discover the hidden treasures unique to each area. This falls under MMPRC’s initiatives to encourage tourism growth in all regions of the Maldives, broadening exposure to the diverse tourism products available in the Maldives.
The goal is to elevate Visit Maldives’ digital marketing landscape by showcasing the Maldives as more than just a honeymoon destination with various accommodation options. This initiative is driven by a desire to increase awareness about the distinctive offerings within each of the Maldives’ atolls. It aims to positively shape their perception of the Sunny Side of Life brand by curating engaging content that highlights the unique features of the atolls and diverse experiences available in the islands.
Additionally, the initiative will target the affordable luxury market to promote the Maldives as the most appealing option for short holidays and weekend getaways under a unified Maldives brand umbrella.
MMPRC aims to continue exploring other atolls in the Maldives as well, encouraging growth and tourism development in all regions of the Maldives, building on the foundation we have created to promote the destination beyond the traditional paradigms of sun, sand, and sea.
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