By Alison Sider
Delta Air Lines said it expects strong summer travel demand as the carrier posted a better-than-expected profit for the first three months of the year.
While other airlines are being stymied by delayed deliveries from Boeing, Delta hadnt been planning to receive any of the manufacturer’s jets this year.
Delta Chief Executive Ed Bastian said that while the arrival of new 737 MAX 10 jets that the airline ordered in 2022 is likely shifting, deliveries from rival planemaker Airbus have been reliablesomething Bastian said has given Delta an advantage.
Bastian said he wasnt among the cadre of airline CEOs that sought to meet with Boeings board last month, an unusual move that expressed their dissatisfaction with the company and its CEO. Bastian hadnt attended a trade group meeting where it was discussed, he said.
Were not sitting waiting for Boeing. I think the other airlines are without a doubt a lot more impacted by the issues Boeing has had, he said.
Bastian praised Steve Mollenkopf, who became Boeings chairman in the companys recent leadership shakeup and will lead the search for its next chief. Hell bring a fresh set of eyes, Bastian said.
— Delta reported profits of $37 million, compared to a $363 million loss a year ago. On an adjusted basis, Deltas profit of 45 cents per share beat the 36 cents per share analysts were anticipating.
— The airline reported record revenues for the first quarter, typically a slower time for travel. Revenue excluding sales from the companys refinery was about $12.6 billion, 6% above the same period a year ago. The carrier expects adjusted revenue to be up 5% to 7% in the second quarter.
— Domestic travel demand was robust after some wobbles last year. Delta said domestic unit revenuethe price per seat flown a milehit a first-quarter record as planes were fuller.
— The carrier said corporate travel demand also gained steam with a 14% on-the-year boost in sales, led by big corporate accounts. Those big businesses in finance and technology had been slower to resume trips. Bastian said corporate travel revenues are back to prepandemic levels.
Delta reaffirmed its full-year earnings guidance of $6 to $7 a share. Its shares tumbled in January when the airline set that profit target, which was lower than the $7 it had previously anticipated. At the time Bastian said Delta was still internally aiming for the higher figure but felt it was prudent to adjust given factors like supply-chain constraints.