Delta profit jumps almost 60% after strong summer

Delta Air Lines’ profit rose nearly 60% in Q3 as strong travel demand continued through the summer, particularly for international trips, though the carrier forecast full-year earnings toward the low end of an earlier estimate after a jump in fuel prices. In its quarterly report Thursday, Delta said it expects adjusted, full-year earnings of $6 to $6.25 a share, after forecasting $6 to $7 a share in July. Delta cut its free cash flow estimate for the year to $2b from the $3b it forecast in the summer. Delta said that it expects solid travel demand in the last three months of the year, estimating revenue will rise 9% to 12% from the same quarter of 2022, with per-share earnings of $1.05 to $1.30, in line with estimates. “We expect many of the same trends to continue in the fourth quarter,” CEO Ed Bastian said. Delta and other airlines trimmed their third-quarter forecasts in recent weeks because of a surge in fuel prices. “Obviously there’s some short-term pressure on fuel as fuel rose quickly in the third quarter and stayed relatively high into the fourth quarter,” Bastian noted. Delta brought in adjusted revenue of nearly $14.6b for the period, up 13% year over year and in line with analysts’ expectations. Net income for the period was $1.11b, or $1.72 per share, up 59% from $695m, or $1.08 per share, during the same period a year earlier. Adjusted for third-party refinery sales and other items, the company earned $2.03 during the quarter. Delta and other global airlines have cited particularly strong demand for trips abroad, with trans-Atlantic travel a standout. The Atlanta-based carrier reported revenue for those flights was up 34% in Q3 compared with last year. Delta’s planes flew 88% full in the quarter, up 1 percentage point from the year-earlier period, despite additional capacity both domestically and internationally. Unit revenue from passengers fell 1.5%, year over year. Airfares have dropped in recent months as airlines grew their schedules.<br/>