Delta forecasts another profit after summer boom drives record revenue

by | Oct 13, 2022 | Business

A Delta Airlines Airbus A-350 aircraft, flight number DL40 bound for Los Angeles takes off from Kingsford Smith International Airport on July 26, 2021 in Sydney, Australia.James D. Morgan | Getty ImagesDelta Air Lines expects to post another profit in the last quarter of the year and said both leisure and business travel continue to recover.The carrier on Thursday said it expects earnings per share of $1 to $1.25 in the fourth quarter, with revenue topping the same period of 2019 by 5% to 9%, a sign higher airfares will stay firm.Delta shares were up more than 4% in premarket trading after the report.For the third quarter, Delta reported net income of $695 million, or $1.08 per share, down from a $1.5 billion profit three years earlier, on record revenue of close to $14 billion, the results of a surge in summer travel with high fares to match. Adjusting for one-time items, Delta posted earnings per share of $1.51, while adjusted revenue came in at $12.8 billion, 3% above 2019 levels, despite a smaller schedule.”The travel recovery continues as consumer spend shifts to experiences and demand improves in corporate and international,” CEO Ed Bastian said in an earnings release.Here’s how Delta performed in the third quarter, compared with Wall Street expectations based on Refinitiv consensus estimates:Adjusted earnings per share: $1.51 versus $1.53 expected.Adjusted revenue: $12.84 billion versus $12.87 billion expected.The Atlanta-based airline is the first U.S. carrier to report third-quarter results, and its upbeat forecast comes as clouds form over other industries, like some retailers. American Airlines, which reports its quarterly results next week, raised its third-quarter revenue forecast on Tuesday, while United Airlines is planning another big trans-Atlantic expansion for 2023, a b …

Article Attribution | Read More at Article Source

Share This