Delta beats profit forecast on strong demand as rivals battle 737 MAX crisis

Delta on Tuesday reported a Q4 profit that beat estimates, boosted in part by customers it gained from rival airlines' 737 MAX cancellations and growing air travel demand. Airlines that own Boeing's 737 MAX are cancelling more than 10,000 monthly flights in total as the aircraft remains grounded following two deadly crashes. Delta does not operate the MAX, enabling it to expand its flight capacity and capture new customers as peers like Southwest Airlines have had to scale back. "There's no question that we're picking up new customers, but that's not the main driver of our performance," Chief Executive Ed Bastian said, citing strong customer loyalty at a time when air travel demand continues to rise. American Airlines Group and United are scheduling flights without the MAX into early June, in anticipation of extra simulator training requirements for pilots once regulators finally approve the jet to fly again. Southwest, the other US MAX carrier, so far is cancelling flights into April. Delta has not picked up premium revenues from rivals over the MAX but Bastian said the carrier would continue to see a marginal benefit while the jet remains grounded. Net income climbed 8% to $1.1b in the quarter through Dec. 31 from a year earlier. Adjusted earnings per share hit $1.70, beating analysts' expectations for $1.40, according to IBES data from Refinitiv.<br/>