Delta reports big profits from summer travel, but warns of fuel costs

Takeaways

Delta Air Lines reported better-than-expected profit as summer travel demand boomed, but warned fuel costs will impact full-year results.
Airline profits soared 59% in the third quarter from a year ago, boosted by an increase in international travel.
Delta lowered the upper end of its outlook profit for the full year due to higher fuel prices.

Delta Air Lines (DAL) said its quarterly profit soared after a strong summer travel season, but the carrier warned that rising fuel costs would impact its overall results. #39;year.

Delta reported net income up 59% for the third quarter of 2023. from $1.11 billion a year ago, or $2.03 per share, beating estimates. Revenue rose 13.3% to a record $14.55 billion, in line with forecasts.

International travel revenues have climbed 35%, with transatlantic sales up 34% and Latin American sales up 20%. Domestic travel revenue increased 6%. The company also noted that sales of its premium seats climbed 17%. Master cabin revenue increased 12%.

President Glen Hauenstein indicated that “a request robust travel” continues into the December quarter. However, Delta expects full-year earnings of between $6 and $6.25 per share, after previously projecting a range of $6 to $7 as rising fuel prices cut into earnings.