Delta Air Lines (NYSE: DAL) reported mixed third-quarter financial results Thursday and expects to see a profit in the final months of its upcoming quarter. The forecast comes amid a rise in corporate travel demand despite the lingering high costs and economic instability.
The airline carrier reported earnings of USD1.51 per share, lower than the expected USD1.52 a share. Revenue amounted to USD12.84 Billion, in line with Wall Street analysts’ predictions.
“Thanks to the incredible work of our entire team, Delta delivered a strong September quarter with record quarterly revenues and a double-digit operating margin. The travel recovery continues as consumer spend shifts to experiences and demand improves in corporate and international,” said Ed Bastian, Delta’s chief executive officer. “In this environment, we expect December quarter revenue growth to accelerate versus 2019 with an operating margin of approximately 10 percent.”
According to Delta and United executives, European travel has been resilient this fall. The airline stated that bookings had recovered 80% compared to pre-pandemic levels by the end of the quarter.
“With strong demand and a return to best-in-class operational performance, we are ahead of our plan for the year on profitability and expect to be free cash flow positive. We’re working towards full network restoration by summer of 2023, which supports a meaningful step up in profitability and cash flow next year on our path to earn over $7 of EPS and $4 billion of free cash flow in 2024,” Bastian said.