Delta Air Lines (NYSE:DAL) expects to return to a profit this quarter thanks to a jump in bookings — and fares — that are helping offset soaring fuel costs.
The company’s shares were up nearly 6% in premarket trading after the airline reported first-quarter results. They opened Wednesday trading better by $1.75, or 4.5%, to $40.37.
Rivals American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL), which both report results next week, also rose.
Delta said Wednesday it expects unit revenues to rise double digits during the second quarter compared with 2019 and that sales overall will be recovered to as much as 97% of sales generated three years ago before COVID devastated travel demand.
In March, Delta logged the highest bookings in its history, CEO Ed Bastian told the media on Wednesday.
Bastian said he expects consumers to prioritize travel despite inflation, which has already pushed up prices at supermarkets, gas stations and in the housing market.
“People have been cooped up for the last two years,” he said. “They’re done investing in their homes and their garden and want to go see someone else’s garden for a change.”
Delta is ramping up its schedule as peak travel season approaches and plans to fly 84% of its 2019 capacity levels this quarter, the Atlanta-based airline said in its quarterly release.
The carrier reported a net loss of $940 million in the first three months of the year on revenue of $9.35 billion, above the $8.92 billion in sales that analysts expected. Sales were off 11% from 2019 levels.