Hollywood, auto strikes dent Delta business travel

Recent strikes by Hollywood stars and UAW members have put a “drag” on business travel demand, which was recovering, Delta Airlines President Glenn Hauenstein said Thursday.

Delta has a large presence in the automotive and entertainment industries, with more than 70% market share at Detroit Metropolitan Wayne County Airport and nearly 20% at Los Angeles International Airport, more than any other airline, airport data shows. airline.

The strikes “have made a big difference to business travel to and from Los Angeles and now the UAW strike, which has cut a lot of business in Detroit,” Hauenstein said during Thursday’s earnings call. “We’re probably the most affected by those two industries.”

The United Auto Workers’ targeted strike, which began after Detroit’s major automakers and unions failed to reach a labor deal before contracts expire in September, is now in its fourth week and is escalating.

Hollywood writers approved a new three-year contract earlier this week after a nearly 150-day shutdown halting major film and television production.

But Hollywood actors, represented by the Screen Actors Guild-American Federation of Television and Radio Artists, are still on strike.Late Wednesday, the Film and Television Producers Alliance, which represents production studios such as disney, common, Netflix Others said that the negotiations have been suspended due to large differences between the two sides on the agreement.

Delta’s Hauenstein pointed to double-digit growth in demand from technology and financial services customers in the third quarter, driving an overall rebound in business travel.

Hauenstein said the company’s survey of corporate customers found that most expect the number of trips to remain the same or increase in the last three months of this year and into 2024.

Revealed: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is a member of the Motion Picture and Television Producers Alliance.