A Fireside Chat with Delta Air Lines

by Maria S. Salinas

As a convener of thought leaders throughout the Southern California community, we are pleased to welcome Scott Santoro, Vice President - Delta Air Lines, Los Angeles & West Sales and Chair of the Chamber’s global trade celebration, World Trade Week Conference, who sat down with Los Angeles Area Chamber of Commerce President and CEO, Maria S. Salinas, for a fireside chat in this week’s Business Perspective. 

1) What does Delta believe the future of travel and transportation of goods in the Southern California region will resemble? 

The future is bright for travel in Southern California. As the region’s largest global carrier, Delta’s overall California network will be approximately 85% recovered from pre-pandemic levels. If this is any indication, the travel and goods transportation industries are poised for massive growth, and momentum is building.  
With demand rebounding, there are clear signs of pent-up demand for travel in the months ahead. We expect to report a profit for the June quarter despite the rise in fuel prices, and based on current trends, we remain confident in a meaningful profit for the year as business travelers return and international restrictions lift.

Business travel in particular continued to accelerate Delta’s overall recovery, with domestic corporate sales about 70% restored versus 2019 as we exited the quarter.

2) How has the pandemic changed the transportation, travel and logistics sectors and how has Delta adapted? 

The COVID-19 pandemic has proven that no institution or individual can take on the economic, environmental, social, and technological challenges of our world by itself. At Delta we found that regaining a competitive cost structure is critical to our success. At the same time, we focus on remaining nimble on capacity as we manage for profitability in this high fuel price environment.

We are making progress on key priorities laid out at Capital Markets Day in December 2021:

• Competitive Advantages: Strengthen competitive advantages as a trusted consumer brand.
• Industry Leadership: Lead the industry operationally and financially by demonstrating agility, operational excellence, and discipline. 
• Brand Preference: Elevate the customer experience.
• Earnings Power: Delta expects to deliver meaningful profitability in 2022.
• Financial Foundation: Restore financial foundations with a focus on efficiency and cash generation by 2024.

3) What is Delta excited about in the year ahead? 

Delta’s been busy building the airports of the future – designed around efficiency and modern wayfinding as well as speed and comfort, with the flexibility to support evolving technological needs. The new Terminal 3 arrivals and departures hall at LAX is a state-of-the-art space which consolidates locations for check in, security, and baggage claim. Delta has invested $12 billion in airport hubs coast-to-coast, re-affiriming our commitment to transform the travel experience on the ground and in the air. 

We’re proud of our connection with the Los Angeles region. Delta is the official airline of Team USA and an inaugural founding partner of the LA28 Olympic & Paralympic Games. This partnership furthers the global airline’s longstanding support for sports — and its proud history supporting Team USA at the Olympic and Paralympic Games.

Delta and its more than 4,000 LA-based employees are part of the fabric of the Los Angeles community. The new LAX modernized facility which we just opened a few weeks ago will allow our employees to better serve our customers from one centralized location, creating a more enjoyable and seamless experience for both customer and employee.