{"id":48380,"date":"2023-10-12T18:54:53","date_gmt":"2023-10-12T13:24:53","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=48380"},"modified":"2023-10-19T23:18:13","modified_gmt":"2023-10-19T17:48:13","slug":"delta-reports-strong-profit-amid-staggering-summer-travel","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2023\/10\/12\/delta-reports-strong-profit-amid-staggering-summer-travel\/","title":{"rendered":"Delta Reports Strong Profit Amid Staggering Summer Travel"},"content":{"rendered":"\n

ATLANTA-<\/strong> Delta Air Lines (DL)<\/a> reported a nearly 60% increase in profit during the third quarter, thanks to strong travel demand that persisted through the summer, especially for international travel. <\/p>\n\n\n\n

However, the airline has adjusted its full-year earnings forecast towards the lower end of its previous estimate due to a surge in fuel prices.<\/p>\n\n\n\n

\"Delta
Photo: By Curimedia – Airbus A330-323X Delta Air Lines N805NW, CC BY 2.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=23488002<\/figcaption><\/figure>\n\n\n\n

Delta Reports Strong Profit<\/h2>\n\n\n\n

In its quarterly report released on Thursday, Delta anticipates adjusted full-year earnings in the range of $6 to $6.25 per share, down from its July forecast of $6 to $7 per share. The airline has also revised its free cash flow projection for the year to $2 billion, down from the $3 billion it initially predicted in the summer.<\/p>\n\n\n\n

Delta remains optimistic about robust travel demand in the last quarter of the year, with an estimated revenue increase of 9% to 12% compared to the same period in 2022. The per-share earnings for this period are expected to be between $1.05 and $1.30, consistent with previous estimates.<\/p>\n\n\n\n

Delta’s CEO, Ed Bastian, anticipates that many of the same travel trends experienced in the third quarter will persist into the fourth quarter. Like others in the industry, the airline had to revise its third-quarter forecasts due to a rapid increase in fuel prices. <\/p>\n\n\n\n

Bastian acknowledged that there is currently short-term pressure on fuel costs, as prices surged during the third quarter and have remained relatively high into the fourth quarter.<\/p>\n\n\n\n

In the three months ending on September 30, here is how Delta’s performance compared to Wall Street expectations, based on consensus estimates from LSEG (formerly known as Refinitiv):<\/p>\n\n\n\n