Improving Demand Pushes Delta Airlines to Raise Expectations

Delta raises sales forecast to pre-pandemic levels thanks to returning travel demand and higher wages

Delta Air Lines expects revenue to return to 2019 levels this quarter as higher travel demand and higher fares help offset higher fuel prices. Note that Delta had previously expected that sales would be 7% lower than their pre-pandemic levels. Read more [Delta is Expected to Return to Profits After the 1Q Results].

Consumers have shown their willingness to buy more airline tickets after travel was halted for more than two years due to the pandemic, and in some cases, demand has returned more quickly than expected, prompting most of them, including Southwest, JetBlue, Spirit and Alaska, to reduce their schedules. To take into account the challenges it faces from the lack of work crews and the bad weather conditions. Read more [JetBlue Schedule Shrinks With Crew Shortages].

Less than a week after announcing a schedule cutback to try to weather the disruption that affected tens of thousands of passengers last month, Delta has renewed its aspirations, and the company has been more conservative about expanding its schedule than its competitors.

Despite this, there were still hundreds of canceled or delayed flights by Delta and other airlines during the Martyrs Day weekend, and Delta’s schedule cuts also indicate that the airline expects costs per seat per mile to rise by 22%. Except for fuel expenses compared to 2019, and also higher than the previous company’s estimates, which were an increase of only 17%. Looking at the stock market, we find that Delta’s share has fallen by more than 5%, and most of the airline’s shares traded lower as well.

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