LET’S JUST GO BACK TO WHAT I WAS
SAYING.
WHAT WOULD A VACCINE DO TO THE
ENTIRE INDUSTRY AND I’M TALKING
ABOUT ONE THAT’S BEEN THROUGH
ALL THE APPROPRIATE PHASES OF
SAFETY?
>> WELL, A VACCINE WOULD
CERTAINLY GIVE CUSTOMERS
CONFIDENCE NOT JUST IN AIR
TRAVEL BUT IN LIFE, IN PUBLIC
LIFE IN GENERAL, AND WHEN THE
VACCINE IS IN PLACE AND THERE
WILL BE A SERIES OF VACCINES
HOPEFULLY OVER THE COURSE OF THE
NEXT SIX TO 12 MONTHS, WE ARE
GOING TO SEE TRAVEL COME BACK AT
A MEANINGFUL LEVEL.
WILL IT RETURN BACK TO PRIOR
YEAR, I THINK IT’S GOING TO TAKE
TWO TO THREE YEARS TO GET
CONSUMER BEHAVIORS BACK, BUT WE
DO KNOW THERE’S A TREMENDOUS
AMOUNT OF PENT-UP DEMAND FOR
TRANSPORTATION, FOR TRAVEL, FOR
MOBILITY.
WE ARE READY TO SERVE CUSTOMERS
WHEN THEY ARE READY TO GO.
LIZ: THE INTERNATIONAL AIR
TRANSPORTATION ASSOCIATION SAID
TODAY THAT IT EXPECTS GLOBAL
TRAVEL, AIR TRAVEL, TO COME BACK
BY 2024.
YOU’RE SAYING 2023?
CAN I JUST PINPOINT YOU ON THAT?
>> OH, I WISH I COULD TELL YOU
THAT PRECISELY.
I THINK THERE’S GOING TO BE A
COUPLE ELEMENTS.
THERE’S DOMESTIC TRAVEL,
DOMESTIC IS DOING BETTER THAN
INTERNATIONAL.
TODAY, WE ARE OPERATING ABOUT
50% OF OUR DOMESTIC FLIGHTS,
WITH ABOUT 25% OF OUR NORMAL
TRAFFIC ON.
SO OVER THE NEXT 12 TO 24
MONTHS, I SEE DOMESTIC COMING
BACK AT A MEANINGFUL LEVEL.
INTERNATIONAL’S PROBABLY LAGGING
DOMESTIC BY ABOUT A YEAR.
SO I THINK NEXT SUMMER’S WHEN
YOU ARE GOING TO START TO SEE
SOME MEANINGFUL INTERNATIONAL
TRAVEL.
COULD IT TAKE TO 2024, I GUESS
THAT’S POSSIBLE.
HOPEFULLY IN THE NEXT TWO TO
THREE YEARS WE WILL BE BACK
TRAVELING AT SCALE.
LIZ: WE ARE TWO WEEKS OR SO INTO
AUGUST.
I KNOW THAT APRIL, MAY, JUNE,
YOU GUYS WERE DOWN 93% WHEN IT
CAME TO LOAD FACTOR.
CAN YOU GIVE US SOME SENSE OF
HOW AUGUST IS SHAPING UP?
HOW IS IT LOOKING?
IS IT BETTER THAN WHAT WE HAVE
SEEN?
>> IT’S GETTING BETTER.
YOU’RE RIGHT.
IN APRIL WE BOTTOMED OUT AT ONLY
ABOUT 5% OF OUR TRAFFIC THAT WE
WOULD TYPICALLY CARRY AT THAT
POINT IN TIME.
FOR AUGUST, WE ARE CARRYING
ABOUT 25% OF OUR NORMAL TRAFFIC.
RIGHT AFTER THE FOURTH OF JULY,
WE HIT A LITTLE BIT OF A STALL,
BUT WE ARE STARTING TO SEE
TRAFFIC SLOWLY BUILD AGAIN.
AS NEWS OF VACCINES AND
DEVELOPMENTS NOT JUST IN RUSSIA
BUT MORE IMPORTANTLY, IN OUR
COUNTRY, ARE STARTING TO BECOME
MORE COMMON PLACE AND CONSUMERS
SEE THE END POTENTIALLY IN
SIGHT, THAT’S ENCOURAGING PEOPLE
TO GET OUT AND TRAVEL.
LIZ: IS IT MORE CORPORATE OR
LEISURE?
WHAT’S THE BALANCE THERE AND THE
BREAKDOWN?
>> IT’S PRIMARILY LEISURE.
CUSTOMERS ARE TRAVELING AS THEY
NEED TO FOR ESSENTIAL REASONS,
WHETHER IT’S FOR WORK PURPOSES
IN TERMS OF GOING TO THE FRONT
LINES TO FIGHT THE VIRUS FOR
FAMILY EVENTS, AS WELL AS FOR
LEISURE ACTIVITIES.
SOME GREAT PRICES IN THE MARKET.
THERE’S A NUMBER OF THEME PARKS
AND HOTELS THAT HAVE SOME GREAT
DEALS OUT THERE.
SO PRICE TAKERS, PRIMARILY
LEISURE TRAVELERS, ARE OUT THERE
SEEKING BARGAINS.
LIZ: I WANT TO GET TO THE MIDDLE
SEAT POLICY THAT YOU, DELTA,
HAVE.
YOU ARE BLOCKING OFF THE MIDDLE
SEAT TO HAVE THAT COVID
DISTANCING.
UNITED AIRLINES ISN’T DOING
THAT.
AMERICAN ISN’T.
I KNOW I BELIEVE JETBLUE AND
SOUTHWEST ARE DOING IT.
BUT YOU OF THE BIG THREE ARE
HOLDING TO THAT.
YOU HAD SAID YOU WOULD HOLD
UNTIL ABOUT SEPTEMBER 30th ON
KEEPING THE MIDDLE SEAT VACANT.
DO YOU PLAN TO EXTEND THAT, ED?
>> WE DO PLAN TO EXTEND THAT.
IT’S OUT THERE THROUGH SEPTEMBER
30th BUT WE WILL CONTINUE PAST
SEPTEMBER 30th TO KEEP THE
MIDDLE SEAT BLOCKED.
OUR TOP PRIORITY AS WE HAVE GONE
THROUGH THE PANDEMIC IS TO
RESTORE CONFIDENCE IN CONSUMER
TRAVEL AND THEIR TRAVEL
BEHAVIORS AND WE BELIEVE
DISTANCE ON BOARD THE PLANE,
HAVING THAT MIDDLE SEAT OPEN,
HAVING THAT SEAT NEXT TO YOU
VACANT, IS AN IMPORTANT FACTOR
IN NOT JUST THE COMFORT OF THE
FLIGHT BUT ALSO THE SAFETY OF
THE FLIGHT.
WE WANT CONSUMERS TO FEEL AS
CONFIDENT AS THEY DO ALREADY
WITH US IN THEIR FLIGHT SAFETY
AS COMPARED TO THEIR PERSONAL
SAFETY.
LIZ: I WANT TO -- FOR A SECOND
HERE YOU JUST GOT A COVID TEST.
NUMBER ONE, WE’VE GOT A LITTLE
VIDEO OF THAT.
THIS IS YOU LIVE, ED.
HOW MANY FLIGHTS HAVE YOU TAKEN
SINCE THE CORONAVIRUS REALLY HIT
AND NUMBER TWO, DID YOU TEST
NEGATIVE?
I’M HOPING.
AND NUMBER THREE, HOW MANY
PASSENGERS DO YOU FIND ARE
REPORTING BACK TO DELTA SAYING
YOU KNOW WHAT, I TESTED POSITIVE
AFTER I FLEW ON A DELTA FLIGHT?
>> WELL, I HAVE BEEN TRAVELING
THROUGHOUT THE PANDEMIC.
I HAVE PROBABLY BEEN ON 30
FLIGHTS SINCE MARCH AND IT’S A
GREAT EXPERIENCE.
WITH ALL THE PROTOCOLS, MASKS,
THE DISTANCING, CAPPING LOAD
FACTORS, MIDDLE SEAT BLOCKED,
ELECTROSTATIC FOGGING, THE WORK
WE DO WITH OUR FILTRATION
SYSTEMS, THE CUSTOMER EXPERIENCE
IS BETTER THAN IT’S EVER BEEN.
OUR SATISFACTION SCORES ARE UP
20 FULL POINTS.
CONSUMERS ARE COMING BACK TO ME
AS I SEE THEM, WHEN I’M
TRAVELING, TELLING ME THEY ARE
ENJOYING THE EXPERIENCE.
CERTAINLY THE FIRST TIME BACK
THERE IS SOME APPREHENSION AS
PEOPLE GET BACK INTO THE
ENVIRONMENT BUT MORE AND MORE
PEOPLE AS THEY TAKE THAT SECOND,
THIRD AND FOURTH TRIP, THEY ARE
TELLING US WE ARE DOING A GREAT
JOB AND IT’S A DISCERNING
CUSTOMER.
IT’S SOMEONE, THEY ARE WATCHING
TO MAKE CERTAIN WE ARE
IMPLEMENTING ALL THE PROTOCOLS
THAT WE TELL PEOPLE WE ARE DOING
AND OUR TEAM IS DOING A GREAT
JOB OF THAT.
LIZ: YEAH.
I TOOK A DELTA FLIGHT, JFK TO
L.A. AND I HAVE TO TELL YOU, I
WAS NOT WORRIED AT ALL.
EVERYBODY WAS REALLY DOING
EXACTLY WHAT YOU WOULD HOPE THEY
WOULD BE DOING.
CONGRESS, SO MUCH SO, NOT QUITE.
THE GOVERNMENT DID GIVE THE
INDUSTRY EARLY ON ABOUT $25
BILLION IN SUPPORT BECAUSE YOU
GUYS WERE ALL DOWN FOR THE
COUNT.
I BELIEVE DELTA TOOK THE LEAST
AMOUNT, JUST OVER $5 BILLION.
BUT THERE IS HOPE FOR MORE.
WHAT KIND OF CLARITY OR
VISIBILITY CAN YOU GIVE US ON
WHETHER CONGRESS AND THE
GOVERNMENT ARE GOING TO GIVE THE
INDUSTRY MORE MONEY AND IF THEY
DON’T, WILL YOU HAVE TO RESORT
TO LAYOFFS?
>> WELL, THE CARES ACT WHICH WAS
THE FIRST ROUND OF STIMULUS, WAS
REALLY IMPORTANT FOR OUR
INDUSTRY.
IT ENABLED US TO HOLD ALL OF OUR
JOBS IN PLACE, NOT JUST AT DELTA
BUT ALL OF THE AIRLINES, IT GAVE
US SIX MONTHS’ TIME TO PLAN FOR
THE RECOVERY.
WE DIDN’T KNOW WHAT WE WERE IN
BACK IN MARCH AND APRIL, AND
WHAT I WOULD TELL YOU IS THAT I
THINK MOST OF US THOUGHT WE
WOULD BE FURTHER ALONG IN
CONTAINING THE VIRUS THAN WE ARE
TODAY.
SO THERE HAS BEEN A LOT OF
CONVERSATION, THERE’S BEEN A LOT
OF SUPPORT, ALL THE WAY UP
THROUGH THE PRESIDENT TO
CONSIDERING EXTENDING THE RELIEF
FOR AIRLINES TO GET THROUGH THE
NEXT SIX MONTHS IN TURN FOR
AGREEING TO CONTINUE TO KEEP
THOSE WORKERS IN PLACE, BECAUSE
WE KNOW AIRLINES ARE GOING TO BE
ESSENTIAL TO THE RECOVERY OF OUR
ECONOMY.
OUR COUNTRY IS TOO LARGE, WE ARE
CONNECTED THROUGH TRANSPORTATION
SYSTEMS GIVEN OUR SCALE AND SIZE
AND HOW WE OPERATE, PARTICULARLY
OUR BUSINESSES.
KEEPING THE EMPLOYEES IN PLACE
WILL ALLOW US TO KEEP BUSINESSES
IN PLACE THAT WILL GET THEM
MOVING AS SOON AS THEY’RE READY.
LIZ: ARE YOU MODELING FOR A
NO-DEAL SCENARIO AND IF SO, WHAT
DOES THAT LOOK LIKE?
WILL YOU HAVE TO HIKE FARES,
WILL YOU HAVE TO CUT PILOT PAY?
I KNOW AS A CEO, YOU ALWAYS HAVE
TO LOOK NOT TEN MINUTES IN FRONT
OF YOUR FACE BUT ABOUT 100 MILES
DOWN THE ROAD.
HAVE YOU MODELED FOR THAT?
>> WELL, I DON’T KNOW THE
OUTCOME.
WE HAVE HEARD SUPPORT BUT I
THINK AS WE ARE ALL WATCHING
WHAT’S GOING ON IN WASHINGTON,
IT’S PRETTY HARD TO PREDICT.
IF WE DO NOT GET THE SUPPORT WE
NEED, I KNOW WITHIN THE
INDUSTRY, THERE WILL BE
FURLOUGHS AND PROBABLY SOME
PRETTY LARGE NUMBERS OF
FURLOUGHS, IN THE TENS OF
THOUSANDS OF EMPLOYEES.
AT DELTA WE ARE TRYING TO
MITIGATE THAT AND HOPEFULLY WE
DON’T HAVE TO DO THAT.
WE’VE HAD A LOT OF GREAT
VOLUNTARY EFFORTS BY OUR
EMPLOYEES TO TAKE TIME OFF.
WE’VE GOT TENS OF THOUSANDS OF
OUR EMPLOYEES THAT EITHER HAVE
TAKEN AN EARLY RETIREMENT, A
VOLUNTARY SEPARATION FROM THE
COMPANY OR ARE OFF ON VOLUNTARY
UNPAID LEAVES OF ABSENCE.
WE HAVE ALMOST HALF OUR ENTIRE
COMPANY OUT AT THIS POINT IN
TIME.
IF WE CAN KEEP USING GOOD
VOLUNTARY MEASURES TO GET
THROUGH THIS, WE CAN MITIGATE
BUT IT’S PROBABLY HARD TO SAY
FOR SURE THAT WE WILL BE ABLE TO
DO THAT COMPLETELY.
LIZ: AND FINALLY, THE
REPUBLICANS, CERTAINLY SENATE
LEADER McCONNELL IS SAYING ONE
OF THE STICKING POINTS FOR THE
NEXT ROUND OF STIMULUS OVERALL
IN THE CARES ACT HAS TO BE A
MORATORIUM ON LAWSUITS BECAUSE
THE THINKING IS IF BUSINESSES
ARE TERRIFIED TO REOPEN BECAUSE
ANY RANDOM PERSON CAN WALK IN
AND CLAIM THEY GOT COVID ON
SITE, THAT IS NOT GOING TO BE A
FULL-THROATED COMEBACK FOR THE
ECONOMY.
AS AN AIRLINE CEO, TELL ME WHAT
YOU THINK ABOUT THAT PART OF
WHAT THE REPUBLICANS DO WANT AND
THAT WOULD BE JUST A HALT IN
COVID-RELATED LAWSUITS.
>> I THINK IT’S REALLY
IMPORTANT.
COVID WAS NO ONE’S FAULT.
IT WAS SOMETHING WE’RE ALL
TRYING TO MANAGE THROUGH A VERY
DIFFICULT TIME IN OUR SOCIETY,
NOT JUST OUR ECONOMY.
FOR AN AIRLINE, HAVING THAT
CONFIDENCE THAT NOT ONLY US BUT
OUR CUSTOMERS, THE BUSINESSES
THAT SIT BEHIND OUR CUSTOMERS
THAT ARE TRAVELERS, ARE GOING TO
BE PROTECTED FROM LITIGATION,
WOULD BE GREAT CONFIDENCE.
I THINK THAT WOULD BE IMPORTANT
TO HELPING TO STIMULATE MORE
TRAVEL AND MORE COMMERCE.
LIZ: ED BASTIAN, CEO OF DELTA,
BOY, I TELL YOU, YOU AS A CEO
HAVE BEEN THROUGH A NEAR-DEATH
BUSINESS EXPERIENCE.
ONE LAST THING.
DID YOU TEST NEGATIVE?
>> I DID TEST NEGATIVE.
I HAVE BEEN TESTED A NUMBER OF
TIMES.
IT’S EASY, BY THE WAY, WE ARE
TESTING ALL OF OUR EMPLOYEES,
ALL 90,000, AND WE ARE GOING TO
CONTINUE TO RETEST THEM AND KEEP
MAINTAINING THEM.
IT’S ANOTHER STEP FOR NOTBUT PRO
OUR CUSTOMERS.