Delta Air raises revenue outlook with full planes, higher fares

Delta Air Lines Inc. said revenue will be higher this quarter than it originally expected as consumers determined to take summer vacations pay higher fares and pack planes, making it the latest US carrier to issue such a forecast.

Unit revenue should be as much as 8 percentage points better than an unspecified earlier outlook, the Atlanta-based airline said in a regulatory filing Wednesday, ahead of a presentation at an industry conference. Costs excluding fuel will be up as much as 22% compared to 2019 levels, exceeding original guidance of 17% higher. 

Delta’s shares jumped 2% to $42.52 before the start of regular trading in New York.

US carriers are counting on the surge of summer travel, despite broadly higher prices across the economy, to kickstart a return to sustained profits after two years of depressed demand during the coronavirus pandemic. Full planes are allowing airlines to boost fares, in some cases enough to offset higher fuel prices. United Airlines Holdings Inc., Southwest Airlines Co. and JetBlue Airways Group Inc. all recently strengthened their revenue projections. 

The upbeat outlook Wednesday follows Delta’s decision to cut flights starting just ahead of the Memorial Day weekend and through most of the summer to help it recover faster from disruptions caused by weather, worker absences and other issues. 

In addition to reductions through June, the carrier will trim 100 daily flights in the US and Latin America from July 1 through Aug. 7, Delta disclosed last week. Capacity this quarter will reach 82% to 83% of 2019 levels, up from original plans for 84% restored.