Delta says Hollywood, auto strikes are denting business travel

A Delta Airlines passenger jet approaches to land at LAX in the course of the outbreak of the coronavirus illness (COVID-19) in Los Angeles, California, U.S., April 7, 2021.

Mike Blake | Reuters

Recent strikes by Hollywood expertise and United Auto Workers union members are a “drag” on business travel demand, which is in any other case recovering, Delta Air Lines President Glen Hauenstein stated Thursday.

Delta has an outsized publicity to the automotive and leisure industries, with a greater than 70% market share at Detroit Metropolitan Wayne County Airport and an almost 20% share at Los Angeles International Airport, greater than every other service, based on airport knowledge.

The strikes have had “a not insignificant change within the business travel to and from Los Angeles in addition to now the UAW strike, which curtailed a major quantity of the business in Detroit,” Hauenstein stated on an earnings name Thursday. “We are most likely essentially the most impacted by these two sectors.”

The United Auto Workers’ focused strikes, which started after main Detroit automakers and the union failed to succeed in labor offers earlier than a September contract expiration, are getting into their fourth week — and escalating.

Hollywood writers earlier this week ratified a brand new three-year contract after almost 150 days of labor stoppage that suspended vital movie and TV manufacturing.

But Hollywood actors, represented by the Screen Actors Guild-American Federation of Television and Radio Artists, are nonetheless on strike. And late Wednesday, the Alliance of Motion Picture and Television Producers, which represents manufacturing studios like Disney, Universal, Netflix and others, stated talks have been been suspended with the 2 sides far aside on a deal.

Delta’s Hauenstein famous that demand from expertise and monetary companies prospects posted double-digit progress within the third quarter, contributing to an total rebound for business travel.

An organization survey of company prospects discovered {that a} majority anticipate their travel to remain the identical or enhance within the final three months of this 12 months and into 2024, Hauenstein stated.

Disclosure: Comcast is the mum or dad firm of NBCUniversal and CNBC. NBCUniversal is a member of the Alliance of Motion Picture and Television Producers.

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