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Delta Air Lines sees snapback to pre-pandemic levels -Breaking

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© Reuters. FILE PHOTO A Delta Air Lines plane passes the U.S. Capitol and lands at Reagan National Airport, Arlington, Virginia. This was on January 24, 2022. REUTERS/Joshua Roberts

(Reuters) -Delta Air Lines Inc stated Wednesday that it anticipates its second quarter adjusted revenue to be at 2019, levels. This is because pandemic-weary travelers plan more leisure trips, unaffected by higher rental car and accommodation prices.

The rapid recovery of travel from the worst pandemic has buoyed the U.S. airline industry, which is now struggling to increase capacity due in part to personnel shortages.

Airlines cancelled more than 2500 flights due to staffing problems, weather issues and COVID-19 complaints among their employees over Memorial Day weekend.

Airlines remain bullish, however, with an eye to strong summer travel demand.

Delta’s operating margin outlook was raised to 13%-14% for the current quarter, as opposed with its prior outlook of 12%-14%. This sent Delta shares up 1.8%, trading at $42.40 just before the bell.

According to the presentation made by Atlanta-based airline, it expects second quarter free cash flow in excess of $1.5 billion with adjusted net debt under $20 billion.

Delta’s outlook on fuel price per gallons has been impacted by higher fuel prices due to the Ukraine conflict. The new fuel price per gallon will be $3.60-$3.70, as opposed to the previous forecast that was $3.20-3.35.

Southwest Airlines (NYSE) Co, and JetBlue Corp Airways both gave optimistic revenue forecasts for this quarter last week.

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