Delta’s net income drops 29% in second quarter
U.S. airline Delta Air Lines reported a 29% drop in second-quarter net profit on Thursday, despite posting record business volume amid strong demand.
The company said in a statement that in the quarter ended June 30, net income was $1.3 billion, compared to $1.83 billion a year earlier.
Its turnover increased by 7%, reaching some 16,660 billion dollars.
Delta faced rising jet fuel prices and wage costs in the second quarter, and also projected lower-than-expected earnings for the third quarter. This affected the stock performance of airline shares amid investor concerns about weakening airfares.
→ Delta, Riyadh Air sign strategic agreement to expand connectivity
Executives offered an upbeat outlook on demand during a conference call, but the company also maintained that growth was “normalizing” after a large rebound following the blockages framed by the covid-19 pandemic restrictions.
“Travel remains a buying priority and Delta’s core customers are in a healthy position,” CEO Ed Bastian said in a conference call with analysts.
Bastian expressed confidence in a “more constructive industry backdrop” in the second half of 2024, as rival airlines focus on profitability through higher fares.
With information from AFP
Related Topics
Copa Airlines Expands Capacity in Venezuela: 17 Weekly Frequencies Between Panama and Caracas Starting in March
Rutaca Airlines Resumes Flights Between Caracas and Punta Cana Starting in March
LATAM Suspends Lima-Havana Flights Due to Fuel Supply Crisis in Cuba
LATAM Recognized for Third Time by APEX as Airline with “Best Inflight Entertainment in South America”
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.