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Delta Rakes in Q2 Revenue Despite a Smaller Pilot Workforce

Delta has added 18,000 workers since the beginning of 2021. [Courtesy: Delta]
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Key Takeaways:

  • Delta Air Lines reported Q2 2022 revenue 10 percent higher than pre-pandemic 2019, despite carrying 15 percent fewer passengers and operating at 95 percent of 2019 staffing capacity.
  • CEO Ed Bastian attributes Delta's specific pilot staffing challenges to a 2020 early retirement inducement, but he is confident the airline will overcome this and not face a long-term pilot shortage for its operations.
  • An industry analyst, Sheila Kahyaoglu, projects a significant industry-wide pilot shortage of 20,000 by 2025 and 26,000 by 2030, though she considers Delta least exposed as a mainline carrier.
  • Delta's primary current bottleneck is not hiring, but rather the training and experience curve for new employees across all groups, which is delaying the full restoration of passenger capacity and leading to trimmed flight schedules.
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Delta Air Lines [NYSE: DAL] reported Wednesday that its second quarter revenue of $13.8 billion for this year was 10 percent better than the same period in pre-pandemic 2019, a year the airline was named the largest in the world based on revenue. Interestingly, the airline’s recent earnings boost comes despite carrying fewer passengers—15 percent fewer—than it did on average in 2019. Yet, analysts on the company’s earnings call had another thing atop their minds: Delta’s pilot and ongoing labor shortage. 

Despite adding 18,000 workers since the beginning of 2021, Delta CEO Ed Bastian said company-wide employment participation was still at 95 percent of 2019 capacity. Still, travel has been smooth for the airline this summer. Bastian said pilots, mechanics, and flight attendants are still needed, but that there would be a slowdown in hiring workers for gate and customer service positions in airports as well as reservations, because it was closing in on its staffing targets for these positions.

Michael Wildes

Michael Wildes holds a master’s degree in Logistics & Supply Chain Management, and a bachelor’s degree in Aeronautical Science, both from Embry-Riddle Aeronautical University. Previously, he worked at the university’s flight department as a Flight Check Airman, Assistant Training Manager, and Quality Assurance Mentor. He holds MEI, CFI & CFII ratings. Follow Michael on Twitter @Captainwildes.

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