Delta Air Lines (NYSE:DAL) expects to post another profit in the last quarter of the year and said both leisure and business travel continue to recover.
The carrier on Thursday said it expects earnings per share of $1 to $1.25 in the fourth quarter, with revenue topping the same period of 2019 by 5% to 9%, a sign higher airfares will stay firm.
For the third quarter, Delta reported net income of $695 million, or $1.08 per share, down from a $1.5-billion profit three years earlier, on record revenue of close to $14 billion, the results of a surge in summer travel with high fares to match.
Adjusting for one-time items, Delta posted earnings per share of $1.51, while adjusted revenue came in at $12.8 billion, 3% above 2019 levels, despite a smaller schedule.
“The travel recovery continues as consumer spend shifts to experiences and demand improves in corporate and international,” CEO Ed Bastian said in an earnings release.
Third-quarter adjusted earnings per share proved to be $1.51 versus $1.53 expected. Adjusted revenue came in at $12.84 billion versus $12.87 billion expected.
The start of Delta’s peak spring and summer travel season was rocky, as disruptions prompted the airline and some of its rivals to trim summer flights to avoid more problems for travelers. Delta said that its capacity would be as much as 92% restored to 2019 levels in the fourth quarter and that it’s working toward a full recovery by next summer.
DAL shares dived 56 cents, or 1.9%, to $28.64.
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