By Lisa Barrington and Rajesh Kumar Singh
DUBAI (Reuters) -Delta Air Lines is running its biggest transatlantic program this year as it sees healthy travel demand, especially on international routes, top executives said on Saturday.
Delta, one of the largest airlines in the United States, has forecast record revenue for the second quarter thanks to buoyant demand for spring and summer travel.
“Summer is going strong and demand is pretty healthy,” CEO Ed Bastian told reporters.
“Demand is growing faster internationally than domestically, and Delta is very well positioned to take advantage of that with its partners,” Bastian added.
Delta says consumers are spending on experiences and travel is a top priority after the pandemic.
Demand is particularly strong for premium travel, which benefits airlines like Delta.
“We've seen continued strength from spring to early summer…our international business is quite strong,” Delta President Glen Hauenstein told reporters.
However, rival American Airlines (NASDAQ said this week there was still excess seat capacity in the domestic market, creating discount pressure.
U.S. airlines plan to further moderate capacity in the second half of the year, which airline executives say will shore up the industry's pricing power.
BOEING
Delta operates a large mixed fleet that includes Airbus and Boeing (NYSE:) aircraft, which is mired in a corporate and quality crisis.
Bastian said Delta is “encouraged” by the steps Boeing is taking with management changes and other adjustments at the company.
“I'm sure we'll see an improvement,” Bastian said, adding that Delta was still committed to its order for Boeing 737 MAX 10 aircraft.
Delta does not currently fly any version of the Boeing MAX, but has MAX 10 on order for delivery next year. The MAX 10, the largest version of Boeing's best-selling narrowbody aircraft, is still awaiting certification from the US Federal Aviation Administration (FAA).
A mid-air cockpit panel explosion in January on an Alaska Airlines MAX 9 flight has put a question mark over certification.
Rival United Airlines has asked Boeing to stop producing the MAX 10 and has converted a portion of its order to the MAX 9.
Bastian said Delta has no plans “at this time” to swap the MAX 10 for another model, adding that he hopes the changes being made at Boeing will allow it to move forward with building the MAX 10.
“We are scheduled to receive them next year, I don't anticipate seeing them for quite some time,” he said.
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