Delta Air Lines (NYSE:DAL) on Wednesday reported a quarterly profit thanks to travelers willing to pay up to fly, more than making up for higher costs.
The carrier also vowed to improve reliability after an increase in delays and cancellations prompted it to scale back its summer schedule.
Delta said its third-quarter capacity would be 83% to 85% of 2019 levels, suggesting the airline is sticking with a conservative schedule compared with some rivals. The company expects a third-quarter profit and reiterated its forecast for full-year profitability.
It expects to see third-quarter sales 1% to 5% higher than three years ago, along with increased costs.
Delta is the first U.S. airline to report earnings for the second quarter. United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ: AAL) announce next week.
A surge in travel demand helped the airline post $735 million in net income. In a measure of how high fares have risen, Delta flew 18% less capacity in the second quarter than it did in the same period of 2019, but it generated $13.82 billion in revenue, 10% more than three years ago.
Revenue for domestic travel was 3% higher, Delta said, noting it also logged improvements in trans-Atlantic travel.
Delta and other airlines have been comparing their results to 2019 to show their progress in getting back to pre-pandemic performance.
Adjusted earnings per share proved to be $1.44 versus $1.73 expected.
Revenue proved to be $13.82 billion, surpassing the $13.57 billion expected.
DAL shares lost $2.10, or 6.8%, in the first hour of to $28.99.
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