Delta lifts 2023 forecast as travel demand stays lofty

Delta lifts 2023 forecast as travel demand stays lofty

Delta Air Lines still sees very strong travel demand, raising its full-year forecast after a strong second quarter
Delta Air Lines still sees very strong travel demand, raising its full-year forecast after a strong second quarter. Photo: MARIO TAMA / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

PAY ATTENTION: Briefly News launched a YouTube channel Briefly TV. Subscribe now!

Delta reported record results in the second quarter on Thursday, raising its full-year forecast on continually robust travel demand as more international markets reopen.

The big carrier, the first US airline to report results, described an extension of the banner industry conditions that have followed the devastating Covid-19 downturn.

"We see strong demand both domestically and internationally as far as we can see," said Delta President Glen Hauenstein.

Executives have for more than a year pointed to pent-up demand for flying after the pandemic shutdowns.

Delta profits more than doubled to $1.8 billion, while revenues jumped 13 percent to $15.6 billion.

Both revenues and operating profits were at quarterly record, the company said in its earnings release.

PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!

Read also

IEA trims demand forecast as interest rates weigh on growth

Delta also raised its full year earnings outlook to a range of $6 to $7 per share, up a dollar.

The conditions have enabled Delta to reinstate its quarterly dividend and accelerate repayment of debt that mounted during the Covid-19 downturn.

The company said its international business continued to tick higher, benefitting from the reopening of Japan and an especially strong flow of traffic between the United States and southern Europe.

A Korean Air joint venture enjoyed a strong performance, while demand to destinations in South America and the Caribbean was also robust.

Executives also highlighted an improved outlook for business travel heading into the fall.

"As we see more and more offices trying to reopen or reopening... that's a great constructive backdrop as we head into the fall and post-Labor Day period," Hauenstein said.

Shares of Delta rose 1.2 percent to $48.51 in midday trading.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.