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Delta’s net income drops 29% in second quarter

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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.

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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

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