Delta Air Lines (NYSE:DAL) posted its highest quarterly revenue and earnings ever thanks to scorching travel demand that has defied fears of an economic slowdown for months.
International travel and demand for premium seats like first class were standouts during the second quarter, while a 22% drop in Delta’s fuel costs boosted the carrier’s bottom line.
The Atlanta-based airline on Thursday hiked its 2023 earnings forecast to an adjusted $6 to $7 a share, up from its estimate last month at the high end of a $5 to $6 per share range. Delta’s stock was up more than 4% in premarket trading after the results.
CEO Ed Bastian said he expects consumers’ desire for travel will fuel bookings for years, calling the current period the “mid-innings” of travel growth.
Bastian also said international demand remains robust into the fall and he expects a slow but steady increase in corporate travel bookings.
Delta is the first of the U.S. airlines to post second-quarter results, and its report sets an upbeat tone for the rest of the year. United Airlines and American Airlines are scheduled to report next week.
In the third quarter, Delta expects to earn $2.20 to $2.50 a share, above analysts’ expectations, on a 16% increase in capacity. The carrier forecast a jump in revenue of as much as 14% from a year earlier.
DAL shares opened Thursday up 44 cents to $48.45.
