Delta Air Lines boss Ed Bastian doesn’t believe the Omicron variant will have much impact on its business because the peak of infections might hit the United States during Delta’s traditionally quietest months in January and February.
Speaking on CNBC on Thursday, Bastian said that he had been seeking advice from medical experts and as a result, he was hopeful the Omicron variant would be the last significant wave before the COVID-19 pandemic turned into an endemic and manageable illness.
The Omicron variant is proving to be so highly transmissible that it could rip through communities with lightning speed. Although early indications suggest Omicron produces less severe symptoms than the Delta variant or original Wuhan strain, the sheer number of infections could still place a significant strain on hospitals.
Although Omicron is driving a new wave of infections in the United States, its impact isn’t yet being felt like in Europe or in South Africa where it was first detected.
If Omicron spreads in the same way, though, it will soon become the dominant variant and drive a surge of infections. Experts believe the speed with which Omicron spreads will mean the peak follows soon after infection growth becomes exponential.
“It’s not going to impact our holidays, our holidays are strong,” Bastian said about the likely impact of the Omicron variant on Delta’s business.
“We are going to see it in our bookings as we get into January and beyond, principally in the international markets,” Bastian continued. “It’s here in the US already, I expect it to be the dominant strain in the next few weeks here. It is going to have some impact on our first quarter.”
Bastian said he was preparing to “batter down” the airline while the Omicron wave passed through but he’s hopeful the airline will quickly recover and that demand will quickly bounce back in time for the Spring and Summer.
Delta is expected to make a profit in the fourth quarter on the back of a strong Thanksgiving and Christmas holiday travel period. The Atlanta-based airline had originally warned of a loss in the fourth quarter due to rising fuel prices. Those costs have since fallen.
Domestic travel demand remains robust but a new round of international travel restrictions are hurting ticket sales. More and more business travellers have also been barred from international travel due to Omicron fears.
Bastian is confident Omicron is a temporary blip and that the international recovery can get back underway in the next few months.
