Delta Air Lines Report quarterly profit Wednesday’s $ 735 million was due to strong demand at the start of the busy summer travel season, with few signs of a short-term slowdown and helping carriers overcome rising costs.
Airlines predict that revenue from July to September will exceed revenue collected during the same period in 2019, even if seats decline by 15-17%, and some strength will continue until fall. He said he expected.
Delta Air Lines President Glenn Howenstein said in a statement, “We expect revenue in the September quarter to increase by 1-5% compared to 2019 as bookings continue to be strong.” I am saying.
The strength of travel recovery has helped airlines overcome soaring costs and a prolonged pandemic downturn, but has also challenged industries struggling to control operational disruptions. For example, Delta canceled about 3% of its flights last month. This is second only to American Airlines, which canceled 5%, according to FlightAware, a flight tracking website.
Improved operations and investment in limited capacity helped drive a 22 percent increase in Delta’s non-fuel costs for the quarter ending June, compared to the same period in 2019. The airline said. Jet fuel prices, which reached record highs in the spring, also appear to have fallen slightly.
The rebound is mottled. According to Delta, revenues from flights within the United States increased by about 3% compared to the same three months in 2019, while revenues from international flights still fell by about 19%. Still, the transatlantic and Latin American routes generated more revenue in June than in the same month of 2019, but flights across the Pacific continued to be delayed.
Corporate travel is further delayed, with domestic business travel sales down about 20% and international business travel sales down about 35% in the quarter compared to the same period in 2019.
Despite that non-uniformity, Delta reported total operating revenue of $ 13.8 billion in the second quarter. The airline states that adjusted quarterly revenue is about the same as revenue collected during the same period in 2019. Also, Delta’s bets on premium seats and services appear to be successful, with revenues from these services recovering faster than revenues from the main cabin.
Delta said operating margin, a measure of profitability, was 11% in the second quarter from 17% in the same period in 2019. For the third quarter of 2022, Delta expects to report an operating margin of 11-13%. ..
American Airlines provided its own quarterly earnings preview on Tuesday, reporting revenues of approximately $ 13.4 billion in the second quarter of this year, up about 12% from the same quarter of 2019. But the cost has gone up, too. American Airlines expects to spend about $ 4 per gallon on jet fuel, which is slightly higher than it was predicted just a month ago. United Airlines and American Airlines will report their financial results next week. Southwest Airlines will report later this month.
