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5 Reasons Why Delta Won’t Disappear Anytime Soon

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Rene’s Points For Better Travel, a division of Chatterbox Entertainment, Inc. has partnered with CardRatings for our coverage of credit card products. Rene’s Points For Better Travel and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. As an Amazon Associate I earn from qualifying purchases.


Take a deep breath. Don’t panic.

We don’t think our beloved Delta Air Lines is going out of business.

What’s Causing the Concern

Let’s face it. This is a very dark, scary, uncertain time. Some small worries are magnified exponentially. So the longer until, say, airlines resume normal schedules, the more time we have to worry.

On top of that, Boeing CEO Dave Calhoun told the Today show it’s “likely” a major US carrier will go out of business because of the COVID-19 pandemic. As USA Today points out, Mr. Calhoun “didn’t name names or define “major” airline in the 22-second snippet NBC shared ahead of the full interview.”

Look, all the airlines are experiencing difficult times right now — and Delta certainly is no exception.

Many of us aren’t traveling unless we absolutely must for work or emergency purposes. René declared earlier he’s done traveling for the year. I originally kept travel plans until finally relenting.

But Rene’s post this past Monday about people buying tickets for the final MD-88 and MD-90 flights stirred up some reader reaction.

Fort Lauderdale, Florida – April 6, 2019: Delta Air Lines McDonnell Douglas MD-90 airplane at Fort Lauderdale airport (FLL) in Florida.
Fort Lauderdale, Florida – April 6, 2019: Delta Air Lines McDonnell Douglas MD-90 airplane at Fort Lauderdale airport (FLL) in Florida. (©iStock.com/Boarding1Now)

Longtime reader RoloT commented, “If EVERYONE follows your no-fly until AT LEAST 2021 advice, there will be a new spelling for Delta Air Lines: H.I.S.T.O.R.Y….and that will be the least of our economic problems.

RoloT is surely not the only person with this concern.

But both René and I think Delta is here for the long haul (aviation pun fully intended).

Here’s why.

5 Reasons Why Delta Won’t Disappear Anytime Soon

Off the top of my head, here are several reasons why I think Delta will be around for a long time.

Analysts Think Delta Can “Weather the Downturn”

Some reliable financial folks seem to think Delta will be safe.

Delta Air Lines 737-900 tail number N919DU is seen parked at gate 2 at Fargo Hector International Airport (FAR).

Seeking Alpha’s Tim Gunn praised Delta’s recovery plan. And just yesterday, Barron’s Al Root noted that Delta and Southwest “have the best balance sheets in the industry and appear to be in the best position to weather the downturn.”

[Disclaimer: neither René nor I own or trade any airline stocks.]

Uncle Sam to the Rescue!

I doubt many of us would be surprised if the government infused more cash into the airlines — including Delta. Heck, the feds have already talked about pre-purchasing a lot of travel just to help out the travel industry.

More Destination Suspensions

The government just gave airlines the go-ahead to suspend flights to 5% of their destinations. That comes on top of Delta’s announcement last week it’s suspending some flights in a few major markets with secondary airports. And let’s not forget they want to temporarily pull out of some smaller markets, too.

The control tower, main entrance, and terminals are seen at Hollywood Burbank Airport - BUR - (also known as Bob Hope Airport) in Burbank, California. © Chris Carley / PointsLounge
Hollywood Burbank Airport (BUR), also known as Bob Hope Airport.

I assume we’d see more of these practices enacted before any of the four major US airlines — American, Delta, Southwest, or United — go under.

Further Route Consolidations

Yesterday’s government announcement about airlines being allowed to cut flights at 5% of their airports stipulated that at least one carrier will still serve affected destinations. Say, for instance, Delta and American bail on a city, then United would still operate flights from that airport.

A Delta Air Lines Boeing 757 parks at a Terminal 2 gate at Los Angeles International Airport (LAX).

That, essentially, is route consolidation. I bet we’d see that on a larger scale. For example, Delta might be the only airline operating flights between LAX and SFO, United could handle DEN to DFW, etc.

SkyMiles

Delta owns SkyMiles. They can print all miles they want. If they need to they can sell them to Amex, or anyone else they want, at any price.

Delta has already updated your 2021 Medallion Status

Delta has confidence you and I will return to flying very soon and has, as we all know, extended status to everyone who had it this year though all of 2021 (you should see your updated status on Delta.com now btw).

Final Approach

Love the mothership or hate it, Delta Air Lines will not go out of business, at least during the foreseeable future. They certainly won’t be in great financial shape after the COVID-19 pandemic (like many of us). But they’ll stick around and keep flying.

— Chris

Featured image: ©iStock.com/rypson

Rene’s Points For Better Travel, a division of Chatterbox Entertainment, Inc. has partnered with CardRatings for our coverage of credit card products. Rene’s Points For Better Travel and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. As an Amazon Associate I earn from qualifying purchases.


Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

4 Comments

  1. JB SanDiego Reply

    Thanks for the reassurance. I am looking to pick on Delta stock at these prices, but still waiting.

  2. Barry Graham Reply

    We all think the same way. I have already bought my Delta stock in my IRA.

  3. Chris,
    From your lips to God’s ears. I certainly hope you’re right.

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