Delta earnings are solid as airline signals optimism on travel demand

Broad economic turmoil and sustained inflation have done little to shake Delta Air Lines’ confidence in travel demand for the rest of the year after it ended summer on a high note. The airline on Thursday reported a $695m profit over the three months that ended in September, despite high costs and Hurricane Ian’s disruptions to travel. Still, that profit was down 54% from the same period in 2019. The airline reported record revenue for Q3, after making some financial adjustments. That adjusted revenue was up 3% from the same three months in 2019. Looking ahead, Delta said that it saw no signs of a slowdown and that it expected revenue in the final three months of the year to be up even more — 5 to 9% — from the same period in 2019. “The demand for air travel remains very strong,” Ed Bastian, Delta’s CE, said on a call with analysts and reporters. “After two years of delaying travel, it is clear that consumers are getting out and traveling the world.” The results and upbeat forecast buoyed shares of Delta and other carriers. Delta stock closed about 4 percent higher on Thursday, and American Airlines, United Airlines and Southwest Airlines also had large gains. Despite fears that growing economic concerns would discourage travel, airline executives have said in recent weeks that demand has remained robust since the summer travel season ended after Labor Day weekend. While leisure travel declined somewhat, as it does every fall, international and corporate travel, which have lagged in the recovery, continued to improve. “While we are mindful of macroeconomic conditions, the travel industry is experiencing a countercyclical recovery,” Bastian said on Thursday’s call. “Demand has not come close to being quenched by a hectic summer travel season.”<br/>