Transportation Security Administration counts this year continue to outperform 2023 results despite interruptions in February from winter storms.
This points at continued healthy demand for airline seats, especially on the premium end, according to CoStar National Director for Hospitality Market Analytics Jan Freitag.
Ed Bastian, CEO of Delta Air Lines, said during his company's first-quarter earnings call in March that "generational shifts and evolving consumer preferences are driving secular growth in premium experiences. And business travel demand has taken another meaningful step forward this year with growth accelerating into the mid-teens over last year."
Delta's premium revenue was up 10% year over year and it continues to add more premium seats to its aircraft, which will improve its retailing capabilities.
"We are seeing the highest premium acquisition mix in our program's history," Bastian added.
Hotel operators are benefiting from this demand as its translating to guests booking luxury and upper-upscale hotels.
"Luxury demand in the first quarter increased 4.6%, and upper-upscale demand was up just under 2%," Freitag said. "Looking ahead, TSA counts and full-service room demand is expected to continue to grow at a healthy clip, especially since April has a positive calendar shift as Easter shifted."