New York (AFP) – Shares of Delta Air Lines rocketed higher Thursday after the carrier reported better-than-expected profits and reinstated its full-year forecast based on a reassuring travel outlook. The big US airline, which had withdrawn its forecast in April amid a weakening outlook at the time, characterized travel demand as “stabilized” and the US economy as “solid,” according to Chief Executive Officer Ed Bastian.
“Our core consumer is in good shape and continues to prioritize travel, and affinity for Delta’s brand has never been stronger,” he said on a conference call with analysts. For the quarter ending June 30, Delta reported profits of $2.1 billion, up 63 percent from the year-ago period. Revenues were flat at $16.6 billion. The company projected 2025 profits of between $5.25 and $6.25 a share.
Delta had withdrawn its full-year earnings forecast on April 9, which was near the stock market’s nadir following President Donald Trump’s aggressive “Liberation Day” tariff announcement in early April. Trump in recent days has announced a slew of new tariff actions. But stock markets have lingered at or near records as investors bet the president won’t execute the most onerous levies.
Bastian on Thursday pointed to “continued progress on trade negotiations,” predicting consumer and corporate confidence would improve in the second half of 2025, “creating the environment for travel demand to accelerate.” Delta executives said the company enjoyed a five percent growth in revenues from premium seats, offsetting lackluster demand for lower-priced tickets.
Executives described as “very weak” demand for travel on off-peak periods, leading the industry to slash flights at odd times on less-traveled days such as Tuesday and Wednesday. Shares of Delta soared 13.6 percent in afternoon trading.
© 2024 AFP
