Delta eyes record Q2 on still-strong demand
Delta Chief Executive Ed Bastian said travel demand remains strong as the carrier forecast a record second quarter
New York – Delta Air Lines reported another round of strong earnings on Wednesday as it forecast a record second quarter based on consistently strong travel appetite.
“Consumer demand is robust and premium trends remain strong,” Delta President Glenn Hauenstein said on a conference call with analysts.
The big US carrier described consumer taste for travel as still unwavering, with business travel taking “another meaningful step forward this year” after the doldrums of the pandemic years, said Chief Executive Ed Bastian.
Delta reported first-quarter profits of $37 million compared with a loss of $363 million during the same period last year. Revenues rose eight percent to $13.8 billion.
Delta, which leads consumer surveys on airline favorability, confirmed its full-year profit forecast as company officials expressed confidence in reducing the company’s debt level.
Delta officials said the industry still faces challenges to expand capacity, in part because of limited air traffic control staff at New York area airports.
Another concern facing airlines is the recent rise in oil prices, which could add to fuel price costs in the coming period.
Shares of Delta dipped 0.2 percent in late-morning trading.