- US Fed Chair sees 'further disinflation' in economy
- Epic Games sues Google and Samsung over app store
- Officials see no shortages from likely US port strike
- UK families of Gaza hostages warn Lebanon attack 'takes focus away'
- Shares in Stellantis, Aston Martin skid on profit warnings
- Dali prints found in London garage sold at auction
- ECB chief backs bank mergers amid UniCredit, Commerzbank talk
- China stocks soar on stimulus, but US and Europe retreat
- 100 dead in storm Helene damage, flooding across US southeast
- China stocks soar on stimulus, Europe slides on automaker woes
- German antitrust watchdog steps up monitoring of Microsoft
- Nepal's urban poor count cost of 'nightmare' floods
- E.Guinea, Gabon clash at ICJ over oil-rich islands
- New blow for UK's Starmer as growth data disappoints
- China's top banks to tweak mortgage rates to boost housing market
- Muslim women break taboos navigating east London's waterways
- Nepal dam-building spree powers electric vehicle boom
- More than 60 dead from storm Helene as rescue, cleanup efforts grow
- Dozens missing, 9 dead in migrant boat wreck off Spanish Canaries
- Death toll from Hurricane John hits eight in Mexico
- Storm Helene's toll rises as rescue and cleanup efforts gain pace
- SpaceX launches mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding as cleanup begins
- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
- France's debt weighs heavier ahead of budget debate
- Iran treads carefully, backing Hezbollah while avoiding war
- Return to sender: waste stranded at sea stirs toxic dispute
- 'Broken' news industry faces uncertain future
- On remote Greek island, migratory birds offer climate clues
- Taken from mother by nuns, victim seeks answers as pope visits Belgium
- China cuts amount banks hold in reserve to boost lending
- Hong Kong, Shanghai extend surge as China optimism boosts markets
RBGPF | 7.18% | 64.75 | $ | |
CMSC | -0.13% | 24.74 | $ | |
RYCEF | -0.14% | 7.03 | $ | |
CMSD | -0.72% | 24.9 | $ | |
SCS | 1.28% | 13.32 | $ | |
NGG | -0.1% | 69.66 | $ | |
GSK | 0.11% | 40.755 | $ | |
BCC | -1.23% | 139.775 | $ | |
RIO | -0.09% | 71.165 | $ | |
VOD | -0.85% | 10.005 | $ | |
JRI | 0.66% | 13.67 | $ | |
RELX | -0.38% | 47.38 | $ | |
AZN | 0.23% | 77.8 | $ | |
BCE | -1.19% | 34.775 | $ | |
BP | -0.11% | 31.385 | $ | |
BTI | -0.89% | 36.515 | $ |
Delta shares fly as strong demand offsets jet fuel drag
Delta Air Lines offered an upbeat outlook for the summer travel season on Wednesday, saying strong demand is providing enough pricing power to make up for soaring fuel costs.
Shares jumped on the report and outlook, with Delta reporting a smaller than expected loss in the first quarter, even as it contended with a nearly 50 percent increase in jet fuel prices.
"Delta is well-positioned to capitalize on robust consumer demand and accelerating return of business and international travel," said Delta President Glen Hauenstein in a press release.
"In the June quarter, we are successfully recapturing higher fuel prices," he said, adding that the company expects revenues equivalent to between 93 and 97 percent of the 2019 quarter.
For the quarter ending March 31, Delta reported a loss $940 million, smaller than the year-ago loss.
Revenues were $9.3 billion, more than double those from the 2021 quarter, but lower than the $10.5 billion in the pre-pandemic 2019 quarter.
Airlines are adjusting to a higher cost environment in general amid the tight labor market and supply chain problems. Jet fuel is typically the biggest cost for an airline, after labor.
Hauenstein said in March that the airline was targeting price increases of about $15 to $20 a ticket on a fare of $200 to make up for higher jet fuel costs.
On Wednesday, Delta executives declined to update those figures, but said brisk ticket sales meant higher prices on remaining available seats.
A July flight between Orlando and Los Angeles is currently priced at about $750 or more at most times.
"We haven't seen a lot of resistance in the price points," Hauenstein said. "My advice is to book early and be flexible if fare is your main attribute."
Executives said the heady market reflects pent-up consumer demand after two years of Covid-19 constraints.
"You're seeing a pretty significant shift from goods to experiences," said Delta Chief Executive Ed Bastian on a conference call with analysts.
"Consumers have not been traveling the last two years. So this is a category they have been prioritizing."
Shares rose 4.3 percent to $40.26 in late-morning trading.
Y.Uduike--CPN