{"id":1687542,"date":"2022-10-13T06:56:49","date_gmt":"2022-10-13T10:56:49","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1687542"},"modified":"2022-10-13T06:56:53","modified_gmt":"2022-10-13T10:56:53","slug":"delta-misses-quarterly-profit-estimates-sees-no-letup-in-travel-demand","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/delta-misses-quarterly-profit-estimates-sees-no-letup-in-travel-demand\/","title":{"rendered":"Delta misses quarterly profit estimates, sees no letup in travel demand"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdelta-misses-quarterly-profit-estimates-sees-no-letup-in-travel-demand%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1687542&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Rajesh Kumar Singh<\/p>\n<p>CHICAGO (Reuters) \u2013     Delta Air Lines Inc\u2019s quarterly profit missed Wall Street estimates on Thursday but the carrier expects travel demand to remain robust despite growing risks of an economic recession. <\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>Adjusted profit for the quarter through September came in at $1.51 a share, below analysts\u2019 expectations of $1.53 per share. The company reported $12.84 billion in adjusted revenue.<\/p>\n<p>Delta said Hurricane Ian, which led to mass flight cancellation last month, hurt earnings by three cents a share.<\/p>\n<p>Strong travel demand, however, helped the Atlanta-based carrier generate its highest-ever quarterly revenue in the third quarter. <\/p>\n<p>Delta expects its revenue in the fourth quarter to be up as much as 9% from the same period in 2019, translating into an adjusted profit of $1-$1.25 per share. That\u2019s higher than a profit of 79 cents a share expected by analysts in a Refinitiv survey.<\/p>\n<p>In an interview, Chief Executive Ed Bastian said a shift in consumer spending from goods to services is driving travel recovery. With consumers\u2019 finances still \u201cquite healthy,\u201d he doesn\u2019t expect a letup in travel demand.<\/p>\n<p>\u201cWe\u2019re seeing in the bookings some very strong demand signals,\u201d Bastian told Reuters. <\/p>\n<p>U.S. carriers are enjoying the strongest consumer demand in three years. Reopening of borders after the COVID-19 pandemic as well as a strong U.S. dollar are encouraging more Americans to travel overseas, while office reopenings are boosting corporate travel demand.<\/p>\n<p>Delta said corporate bookings \u2013  the industry\u2019s cash cow \u2013 have increased after last month\u2019s Labor Day holiday, reaching 80% of the pre-pandemic level by the end of September.<\/p>\n<p>Its international passenger revenue has also recovered to 97% of the 2019 levels, driven by the demand for transatlantic flights.<\/p>\n<p>Yet, growing risks of economic recession have sparked worries about travel spending, hammering airline shares and taking the focus away from what is shaping up to be the industry\u2019s best earnings performance in three years. The NYSE Arca Airline index is down 36% this year.<\/p>\n<p>Carriers, which are facing higher fuel and wage bills, have been relying on robust demand to mitigate inflationary pressure with higher fares.<\/p>\n<p>Higher ticket prices, for example, led to a 23% jump in Delta\u2019s total revenue per available seat mile in the latest quarter even though its capacity remained well below the pre-pandemic level.<\/p>\n<p>But with the Federal Reserve aggressively raising interest rates to tame inflation by lowering demand and slowing economic growth, the industry\u2019s pricing power is under threat.<\/p>\n<p>If the economy does slip into a recession, Bastian said Delta would focus on further reducing its non-fuel costs, which are projected to ease in the December quarter from a quarter ago. But he expects the urge to travel to remain strong.<\/p>\n<p>\u201cWe don\u2019t think that just one busy summer of traveling is going to quench the desire and the needs of consumers,\u201d Bastian said. \u201cThis demand surge is going \u2026 to continue for some time.\u201d<\/p>\n<p> (Reporting by Rajesh Kumar Singh in Chicago; Editing by Cynthia Osterman)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/delta-misses-quarterly-profit\/attachment\/delta-air-lines-planes-are-seen-at-john-f-kennedy-2\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9C0JB-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9C0JB-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Rajesh Kumar Singh CHICAGO (Reuters) \u2013 Delta Air Lines Inc\u2019s quarterly profit missed Wall Street estimates on Thursday but the carrier expects travel demand to remain robust despite growing<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1687542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1687542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1687542"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1687542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1687542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1687542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1687542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}