Delta Air Lines has provided an optimistic outlook for the current quarter, following better-than-expected first-quarter earnings. The company anticipates an adjusted profit of $2.20 to $2.50 per share in the second quarter, with a 14% to 15% operating margin and a 5% to 7% year-on-year increase in revenue. Delta Air Lines also reaffirmed its profit forecast for 2024, expecting $6 to $7 per share and a free cash flow of $3 billion to $4 billion. The positive outlook is driven by the resilient global travel demand, with the International Air Transport Association projecting a rise in travel numbers.
CHICAGO - Delta Air Lines offered an upbeat outlook for the current quarter on Wednesday after its first-quarter earnings topped Wall Street estimates on buoyant travel demand , sending its shares nearly 5% higher in premarket trading.
Airlines, however, are struggling with plane shortages, constraining their ability to supply more seats during peak travel periods, translating into stronger pricing. It also reported an improvement in the U.S. market as its domestic unit revenue turned positive in the March quarter, with an improvement of 7 percentage points from a quarter ago.
Its non-fuel costs rose at a slower-than-expected pace, thanks to a strong operational performance in the March quarter. Delta expects a 2% year-on-year increase in non-fuel costs in the current quarter.
Delta Air Lines Second Quarter Earnings Travel Demand Profit Forecast Revenue Global Travel International Air Transport Association
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