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Delta Air Lines (DAL) Q1 2022 earnings

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A Delta Airlines Airbus A-350 airplane, flight number DL40 to Los Angeles departs from Kingsford Smith International Airport, Sydney, Australia on July 26, 2021.

Getty Images| Getty Images

Delta Air Lines expects to return to a profit this quarter thanks to a jump in bookings — and fares — that are helping offset soaring fuel costs.

According to the airline, unit revenue is expected to increase by double-digits in 2019’s second quarter. Sales will also recover to 97% from three years ago when Covid destroyed travel demand.

The Atlanta-based airline also announced that Delta will be increasing its travel schedule to meet peak season. It plans to fly 84% more of its capacity in 2019, according the first quarter earnings release.

Higher fuel costs and additional expenses associated with increasing capacity are causing airlines to face higher fuel prices. U.S. domestic airfare rose 20% last monthAdobe data shows that 2019 is more expensive than 2019, which indicates passengers’ willingness to pay more when they travel, after the two-year pandemic.

This is how Delta did in the first quarter, compared to what analysts had expected, based on average estimates by Refinitiv.

  • Loss adjusted per share $1.23 versus $1.27 expected.
  • Revenue: $9.35 billion versus $8.92 billion expected.

Delta anticipates that its fuel costs will rise by 17% during the second quarter, as it continues to increase flying and hires to keep up with demand.

On revenue of $9.35billion, the carrier posted a net loss in the first quarter of 2019. This is higher than the $8.92billion that Refinitiv analysts expected. The 2019 sales were down 11%

The results of the Carriers’ recovery have been compared to that in 2019 by comparing them with their pre-pandemic performance.

The fuel bill for Delta rose by 6% to $2.09 Billion in 2019, despite the fact that its total capacity fell 17%. According to Platts. Jet fuel prices are more than twice as high this year than last and up over 50% since the beginning.

CEO Ed Bastian released the following statement: “As brand preference increases, demand momentum grows, we’re successfully capturing higher fuel prices. Driving our outlook to a 12-14 percent adjusted operating margin, strong free cash flow, and a 12-14 percent adjusted operating margin in June quarter,” he said.

Delta expected a loss of 14th quarter in January as Covid cases were soaring. Delta’s loss per share was $1.23, which is slightly less than the analyst-predicted loss of $1.27.

At 10:10 a.m. ET, Delta executives will host a conference call. ET for analysts and media to discuss the results.

The story is still in development. Stay tuned for new updates.

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