Delta’s CEO is bullish on summer travel
Delta returned to profitability in March 2022
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Delta says the summer travel season may be a sweet one as the pandemic eases and consumers and business travelers return to the skies.
"While we are confident in summer demand and the capacity plans that we have in place given the macro uncertainty, we will remain nimble on capacity for the second half of the year and continue to prioritize sustained profitability," Delta CEO Ed Bastian said on the carrier’s earnings conference call Thursday.
He also noted the airline returned to profitability in March, which he says is sustainable through the remainder of 2022. The carrier also noted that a snapback in demand is helping ease the spike in fuel, which is trading above $100 per barrel.
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Delta CEO Ed Bastian
Delta shares gained over 6% during Thursday’s session, and other airlines rallied on the positive outlook.
SOUTHWEST PILOTS DELIVER DIRE WARNING
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DAL | DELTA AIR LINES INC. | 47.94 | -1.30 | -2.64% |
| AAL | AMERICAN AIRLINES GROUP INC. | 13.92 | -0.30 | -2.11% |
| JBLU | JETBLUE AIRWAYS CORP. | 5.91 | -0.19 | -3.11% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 52.67 | -1.35 | -2.50% |
In recent months, airlines have scrambled to meet a rapid rebound as the pandemic fades, at times encountering canceled flights and staff shortages.
Delta Air Lines planes sit idle at Kansas City International Airport (Jamie Squire/Getty Images / Getty Images)
Delta, however, says it is prepared to meet those challenges.
"We feel good about our staffing and our ability to meet demand as we continue to restore the airline," Bastian added.
June will be a telltale month with Delta forecasting a 93% to 97% return to 2019 revenue levels.
For the first quarter reported Thursday, Delta lost $940 million, or $1.23 per share, excluding special items. Revenue topped $9.3 billion.
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Delta shares have gained over 11% this year.