As the entertainment and auto industries struggle in the wake of labor-related issues, the airline industry is feeling the strain. Major carrier Delta Airlines recently reported that travel disruptions driven by Hollywood and auto strikes are negatively impacting the company.
The labor dispute between the Writers Guild of America and the Alliance of Motion Picture and Television Producers in Hollywood has caused the industry to grind to a halt, as movie and TV production are routinely suspended. Many of the travelers that Delta would typically see in their business class cabins have become scarce as workplaces are temporarily shut down.
Meanwhile, auto workers have been striking for better pay, making travel for auto-related business more difficult. The conflicts within both industries are not likely to be resolved anytime soon, and Delta is bracing itself for the long-term hit that business travel could take.
Delta’s chief revenue officer, Luca de Meo, expressed confidence in the airline’s ability to cope with the situation. Despite the disruptions in the industry, De Meo noted that leisure travel is doing well and that Delta has been successful in its efforts to cut costs.
Still, the cost of labor-related struggles within the entertainment and auto industries continues to carry over into Delta’s operations. Though the airline has managed to cope with the noticeable dip in business travel, the long-term effects of the disputes could be far-reaching if they remain unsolved.
