by Donald Wood
Last updated: 8:50 AM ET, Wed April 10, 2024
Delta Air Lines shared a more positive outlook for the second
quarter of 2024 as earnings topped Wall Street estimates thanks to increased travel
demand.
According to Reuters.com,
Delta officials forecast an adjusted profit of $2.20 to $2.50 per share in the
quarter ending in June, up from the $2.23 per share estimates. The airline
believes it will post an operating margin of 14-15 percent, with a 5-7 percent year-on-year
increase.
Delta officials also expect free cash flow of $3 billion to
$4 billion, with a full-year forecast for a profit of $6 to $7 per share. In
the first quarter, the carrier reported a six percent annual jump in revenue,
thanks in part to strong international demand and a surge in business travel.
“We anticipate continued strong momentum for our business,”
CEO Ed Bastian told Reuters.
One of the main reasons behind the airline’s positive
outlook is the continued success of worldwide air travel demand. According to
the International
Air Transport Association (IATA), 4.7 billion people are expected to travel
in 2024, compared to 4.5 billion in 2019.
As for domestic travel, Airlines for America (A4A) said air traffic
in the United States is estimated to reach an all-time high in 2024. Issues
with plane deliveries has some carriers concerned they won’t be able to meet
demand.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
