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Delta calls 2021 year of recovery after first loss in 11 years
Market will see 26% earnings growth in 2021: Expert
Head of Equities Americas at UBS Global Wealth Management David Lefkowitz on his outlook for the market.
Delta Air Lines CEO Ed Bastian expects 2021 to be "the year of recovery" after the coronavirus pandemic cut operating revenue by 64% and prompted its first annual loss in 11 years.
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"We don’t anticipate that by the summer travel will be back anywhere close to where it previously was, but it will be a meaningful improvement, sufficient to be able to drive profitability for us in the back half of the year," Bastian told Reuters.
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The strength of the recovery will hinge on factors such as the pace of vaccine rollouts and people's appetite for flying after a year that nearly brought global travel to a halt.
In the first quarter, the Atlanta-based airline expects revenue to fall by 60% to 65% from a year ago and its scheduled flight capacity to shrink by 35%.
As it continues to block middle seats at least through March 30, it expects the actual capacity it sells to fall by around 55%.
DELTA CEO SEES SOME RECOVERY FROM TRAVEL SLUMP LATER IN 2021
"When the demand for air travel picks up because of confidence, that’s going to be the indication that we start selling those middle seats," Bastian said.
Business travel should pick up in the second half of the year but remain muted for a period of time, he said.