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Delta says summer travel season could be sweet as the pandemic eases and consumers and business travelers return to the skies.
“While we are bullish on summer demand and the capacity plans we have in place given the macro uncertainty, we will remain flexible on capacity in the second half of the year and continue to prioritize sustained profitability,” said Ed Bastian, Delta CEO Conference call on the airline’s earnings on Thursday.
He also noted that the airline returned to profitability in March, which he believes is sustainable until the end of 2022. The airline also noted that a drop in demand is helping mitigate the rise in fuel, which is trading above $100 a barrel.
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Delta shares gained over 6% during Thursday’s session as other airlines rallied on the positive outlook.
PILOTS FROM THE SOUTHWEST DELIVER DIRECT WARNING
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| DAL | DELTA AIR LINES INC. | 41.04 | +2.43 | +6.29% |
| EEL | AMERICAN AIRLINES GROUP INC. | 18.95 | +1.82 | +10.62% |
| JBLU | JETBLUE AIRWAYS CORP. | 12.70 | +0.53 | +4.35% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 45.14 | +2.41 | +5.64% |
In recent months, airlines have struggled to manage a speedy recovery as the pandemic subsides, and at times have faced canceled flights and staff shortages.
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Delta Air Lines planes stand still at Kansas City International Airport (Jamie Squire/Getty Images/Getty Images)
However, Delta says it’s ready to meet those challenges.
“We feel good about our staffing and our ability to meet demand as we continue to restore the airline,” added Bastian.
June will be a telltale month, with Delta forecasting a 93% to 97% return to 2019 revenue levels.
For the first quarter reported Thursday, Delta lost $940 million, or $1.23 per share, excluding special items. Revenue exceeded $9.3 billion.
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Delta shares are up over 11% this year.