Delta Airlines recently reported that strikes in the movie and automotive industries are having an adverse effect on business travel. Experts say that the strikes have the potential to cost the passengers more in the long run as airlines seek to recoup their lost revenue.
Movie strikes have been in effect since April 2019, when the Writers Guild of America refused to agree to a new contract with the Alliance of Motion Picture and Television Producers. Since then, several high-profile movies have been postponed, including the ninth installment of the Mission Impossible series, Fast & Furious 9, and Dune.
Auto strikes are also a concern for Delta. As reported by Forbes, General Motors and the United Automobile Workers union are in the midst of a strike that entered its tenth day on October 2nd. The strike, which began on September 16, affects GM’s United States operations, including factories in four states.
With fewer people traveling to see productions that have been postponed due to the strikes and fewer employees of GM traveling for business purposes, Delta has seen its business travel segment affected significantly. The airline said that the strike has resulted in a 4% drop in demand for their services and a 7% drop in business revenues.
The airline is optimistic that the situation will improve when the strikes are resolved, but they have warned that it could take some time for their revenues to return to pre-strike levels. In the meantime, Delta is advising its customers to book tickets as far in advance as possible to minimize any potential disruption or additional cost.
The movie and auto strikes are an unfortunate challenge for many industries, particularly airlines such as Delta. While the airline is confident that business travel will eventually recover, their current and prospective clients need to be aware of the potential financial impact and plan their trips accordingly.