Delta Air Lines projects growth in earnings for Q4 due to strong demand and holiday bookings.

From CNBC: 2024-10-10 06:38:36

Delta Air Lines projects growth in fourth-quarter earnings due to strong travel demand and holiday bookings. The company forecasts adjusted earnings of $1.60 to $1.85 per share, with expected revenue increasing between 2% and 4% from last year. Despite a 1-point revenue hit due to lower demand around the election, holiday bookings are strong.

In the third quarter, Delta’s adjusted earnings per share were $1.50 compared to the $1.52 expected, while revenue was $14.59 billion adjusted versus $14.67 billion expected. The CrowdStrike outage in July resulted in a 45-cent hit to adjusted earnings, causing a $380 million revenue loss for the airline.

Delta is seeking compensation from CrowdStrike and Microsoft for the outage. Delta’s third-quarter net income rose 15% to $1.27 billion, with total revenue reaching $15.68 billion. While passenger revenue remained steady, premium offerings like first-class continued to outpace the main cabin.

Despite an oversaturated domestic market affecting airfare, Delta plans to expand capacity by 3% to 4% in the fourth quarter. The carrier expects full-year adjusted earnings between $6 to $7 a share, excluding the impact of the CrowdStrike outage.



Read more at CNBC:: Delta Air Lines (DAL) 3Q 2024 earnings