Delta sees strong demand persisting as it reports loss

Delta sees strong demand persisting as it reports loss

Delta Air Lines again pointed to pent-up demand from Covid-19 as it offered a bullish second-quarter forecast
Delta Air Lines again pointed to pent-up demand from Covid-19 as it offered a bullish second-quarter forecast. Photo: Sarah Stier / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Pointing to persistently strong flying demand, Delta Air Lines offered a bullish spring season forecast Thursday as it reported a loss in the first quarter.

The big US carrier, the first major airline to report results, described robust bookings across the board, with both international and business travel adding to earlier recoveries in domestic leisure.

Executives attributed the continued strength to pent-up demand, still a factor three years after the peak of Covid-19.

"What we're hearing from the travelers, hearing from the market, what we're hearing from the agencies, this is a very different recovery trajectory than other consumer businesses are experiencing," said Chief Executive Ed Bastian.

For the quarter ending March 31, Delta reported a loss of $363 million despite a 36 percent jump in revenues to $12.8 billion.

However, results were dented by higher costs for salaries and fuel, as well as a one-time hit of $864 million related to a four-year agreement with Delta's pilot union that included hefty pay hikes.

Read also

World would gain $1 tn by closing agriculture gender gap: UN

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

Delta expects record June quarter revenue, yielding profits of $2 to $2.25 per share, above analyst forecasts.

Although higher costs were a drag, Delta executives expect expense pressures to moderate over the course of 2023 as it spends less on pilot training and brings more staff into operations.

Executives also said they were seeing a tempering in costs from suppliers throughout their business.

Shares fell 1.0 percent shortly after midday to $33.39.

Briefing.com described the results as "solid," but said the retreat in the stock may reflect "investors' concerns that consumers will eventually push back on higher fares and cut back on travel spending as economic headwinds persist."

New feature: Сheck out news that is picked 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.