by Donald Wood
Last updated: 1:45 PM ET, Thu October 12, 2023
Delta Air Lines announced stronger-than-expected third-quarter
profit that reached $1.11 billion, but the company's top executive said higher fuel costs would offset some of
the holiday season rush for the rest of the year.
Delta CEO Ed Bastian revealed that profits were up 59
percent year-over-year, with higher labor costs being offset by strong ticket
sales in the premium seating and international service categories.
“Thanks to the outstanding work of our entire team, Delta
delivered record September quarter revenue and a double-digit operating margin,”
Bastian said. “Our operational reliability continues to strengthen, thanks to
our people, and I’m pleased to recognize their outstanding efforts with over $1
billion accrued year-to-date towards profit sharing.”
Data from the airline showed passenger-carrying capacity
increased 16 percent during the third quarter, and passengers flying with Delta
traveled 64 billion miles—a 17 percent increase—and filled 88 percent of the
total number of available seats.
Total revenue for the third quarter rose 11 percent to
$15.49 billion, with main cabin ticket sales jumping 12 percent and premium
seating increasing by 17 percent. Delta’s loyalty program also improved by 21
percent.
“Delta continues to set itself apart as a trusted consumer
brand delivering welcoming, caring and elevated service by the best people in
the industry,” Bastian continued. “Our differentiated position supports our
expectations for full year revenue growth of 20 percent over 2022, and pre-tax
earnings of over $5 billion, a near doubling over prior year earnings.”
In September, Delta announced that some of the recent
changes to the carrier’s loyalty
program would be rolled back after travelers voiced their displeasure. CEO
Ed Bastian said the airline “went too far” when addressing the rising number of
frequent flyers reaching elite status.
The carrier revealed earlier that it planned to limit the
number of travelers permitted to enter its airport
Sky Clubs, starting on February 1, 2025. The airline also announced changes
to the SkyMiles program, which makes it harder to qualify for status by
allowing only Medallion Qualification Dollars to serve as the qualifier for
Medallion Status.
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