Delta, American Airlines see demand slow - and fear is to blame - video Dailymotion

Caroline Woods brings you the biggest news of the day, including why airlines are seeing less demand from flyers.

Transcript

00:00Travel demand is down and while there are a host of factors contributing to the pullback,

00:04one stands out more than the rest, fear. After a fatal American Airlines crash in January and

00:10a Delta flight flipping upside down upon landing in February, flyers are opting not to fly.

00:16Speaking at the JPMorgan Chase Investor Conference, Delta CEO Ed Bastian said,

00:21we saw a pretty immediate stall in both corporate travel and bookings,

00:25consumer confidence and certainty in air travel started to wane a little bit as

00:29questions of safety came in. Now Bastian did not reveal just how much ticket sales have slowed.

00:35American Airlines was forced to cut its revenue outlook for the quarter in the wake of a fatal

00:40crash in Washington, D.C. The airline expected a three to five percent increase from a year ago,

00:45but now expects revenue to remain flat. But CEO Robert Isom said fear isn't the only reason for

00:52the slowdown. He said economic uncertainty is also playing a big part in the falling demand.

00:58The National Transportation Safety Board has yet to determine causes for either crash.

01:03That'll do it for your daily briefing. From the New York Stock Exchange,

01:06I'm Caroline Woods with The Street.