[ad_1]
Delta Air Lines reported ‘record advanced bookings’ for the upcoming summer season, despite posting a net loss of $363 million in the first quarter.
In financial statements posted on Thursday (13 April), the carrier reported $11.8 billion in adjusted operating revenue, a 45 per cent increase on 2022, and 14 per cent higher than the same period in 2019.
Advance cash bookings for the quarter were nearly 20 per cent higher than 2019, with revenue from premium products continuing to outpace economy bookings.
The carrier said its first quarter revenue and earnings results were in line with forecasts, and that it expects strong summer bookings to boost profits in the second quarter.
“With record advance bookings for the summer, we expect June quarter revenue to be 15 to 17 per cent higher on capacity growth of 17 per cent year over year,” said Delta president Glen Hauenstein.
Business travel also showed signs of continued recovery in the first quarter, largely driven by international and small and medium-sized business (SME) demand, according to the carrier.
SME business bookings for the quarter were fully recovered to 2019 levels, while international corporate sales, which included tickets for travel during and beyond the quarter, increased to approximately 90 per cent of pre-pandemic levels, excluding China.
Meanwhile, domestic corporate sales between January and March were approximately 85 per cent of 2019 levels.
An internal survey of corporate clients carried out by the airline found that 96 per cent of companies expect travel to increase or stay the same in the second quarter.
Delta’s chief executive officer Ed Bastian said that 2023 “is off to a strong start” and that the carrier is “building momentum”.
“With solid March quarter profitability and a strong outlook for the June quarter, we are confident in our full-year guidance for revenue growth of 15 to 20 per cent year-over-year,” he said.
[ad_2]
Source link