Delta Air Lines sees profit in the final months of the year outpacing Wall Street’s expectations, buoyed by a resurgence in international travel and the strongest recovery rates for corporate sales since the pandemic began.
The outlook suggests the carrier — and the broader airline industry — is gaining momentum in its recovery from a pandemic-driven slump. While demand from leisure passengers has largely come back, lucrative international travel by large corporations is the last segment to bounce back. That is particularly notable for Delta, where one-third of passenger revenue in 2021 was from premium products.
“We’ve been 90% full as an airline every day since the first of April,” he said. “We expect to see that through the end of the year and into the spring.”Corporate sales have recovered to 80% of prepandemic levels, with a particular jump after Labour Day, Delta said. Revenue in the third quarter from international passengers rebounded to 97% of the level from the same period in 2019, fuelled by trans-Atlantic trips.
Delta’s adjusted earnings were $1.51 a share in the past quarter, including a 3c impact from Hurricane Ian. That narrowly missed the $1.54 estimate from analysts. Revenue was $12.8bn, matching analysts’ predictions.