Atlanta-based Delta Air Lines held its fourth-quarter earnings call this week. Discussing various parts of the recovery, Delta’s executives were asked about China and how the airline was planning for the recovery in this crucial geography. While there is still continued uncertainty over travel regulations in China, the airline’s executives expressed an interest in staying with the market and seeing how it develops in the recovery.
Delta Air Lines talks about China
Delta’s CEO, Ed Bastian, was asked about the recovery and how the airline was thinking about China, which, as it stands, is a relatively small piece of the network:
“It’s been interesting as we’ve watched a lot of the nations around the world all manage it seemingly somewhat differently. As it relates to us, you’re right. China is not a big part of our network. We’d like it to be a bigger part, but it historically hasn’t been. And it’s going to be a pretty small part of our network at least for the next couple of years. We’ll see beyond that.”
The reason Delta is keeping China small is largely because of the current demand environment. As a result of strict travel restrictions, there is not a lot of demand between the US and China beyond a few flights per week, though cargo has been strong in the market.
Mr. Bastian continued, urging that countries start to utilize the tools and technologies out there to manage the health situation and move toward a broader reopening.
Delta keeps China on its network
Delta will still keep flying to China, albeit with a stop along the way. As a result of complicated entry restrictions, including a willingness to almost instantaneously change requirements that led to the headline-making flight where a Delta flight turned around due to a change in requirements midflight en route to China, Delta has been…