Editor's Note: Some linked articles may be behind subscription paywalls.
1. Delta Reports Record Revenues
In a summer travel season marked by high demand and growing discontent with delays and cancellations from airline services, Delta Air Lines reported record revenues for the second quarter of 2023, the Wall Street Journal reports. Revenue from international flying was 61% more year over year, and Delta’s net income was $1.83 billion in the quarter, up from $735 million in the second quarter of 2022.
Delta CEO Ed Bastian said inflation or an economic slowdown hasn’t affected demand, and the uptick in travel is a long-term change in how consumers choose to spend their money.
“Premium travel is the No. 1 priority for the consumers that we target,” he said. “They’re not interested in buying houses or cars or boats or electronics, but they are interested in traveling.”
2. US Tourists Fill Major European Cities
Tourism numbers are expected to exceed 2019 levels in some major European cities this summer such as Barcelona, Rome, Athens and Venice due to a rise in revenge travel from U.S. travelers, the Associated Press reports.
“The rising appetite for long-haul travel from America is the continued result of the ‘revenge travel’ boom caused by the pandemic lockdowns,” said Tim Hentschel, CEO of HotelPlanner, a booking site. “Big cities within these popular European countries are certainly going to be busy during the summer.”
Travel to and within Europe is still down 10% from 2019, however, as there are fewer people visiting countries near the war in Ukraine, the AP reports.
3. US Hotel Deals Slowed in First Half of 2023
Over the first two quarters of 2023, hotel sales have decreased year over year in number, dollar volume and price per key, HNN’s Bryan Wroten reports. According to LW Hospitality Advisors’ Major U.S. Hotel Sales Surveys, the number of transactions valued at $10 million or more declined by 36%.
“There’s still this bid-ask spread — chasm — and that is going to take a while to unfold,” said Jan Freitag, national director of hospitality market analytics at CoStar. “That’s why if you’re not motivated, if you’re just sort of sitting on the sidelines, there’s really no catalyst for you to really be aggressive in marketing your property.”
4. Tornado Touches Down Near Chicago Airport
A tornado near the O’Hare International Airport in Chicago caused hundreds of flights to be canceled or delayed Wednesday, the Associated Press reports. There were no reports of injuries, and no damage to the airport.
“Some 173 flights departing the airport were canceled and more than 500 were delayed, according to the flight tracking service FlightAware,” the AP reports.
5. Canadian Interest Rates Hit 22-Year High
The Bank of Canada raised interest rates to 5% Wednesday, the highest mark in 22 years, the Wall Street Journal reports. After raising the rate by a quarter-point to reach that mark, Bank of Canada Gov. Tiff Macklem said the bank is prepared to raise them even more.
“The next stage in the decline of inflation toward target is expected to take longer and is more uncertain,” the central bank said.
The Bank of Canada anticipates the country will hit the desired inflation rate of 2% by mid-2025.