Delta Air Lines Inc. expects to log an annual profit in 2022, owing to robust domestic holiday bookings that boosted its Q4 earnings despite the concerns about the spread of the Omicron coronavirus variant.
Ed Bastian, CEO of Delta Air Lines (DAL), stated that Omicron’s impact on the airline’s bookings will not be felt in the holiday season but will be seen to a certain degree in Q1 of next year.
The U.S Airlines further stated that since the variant was initially discovered, it has slowed down the overseas bookings as governments are once again forced to impose travel restrictions.
The rising number of COVID-19 cases, as well as new restrictions, have threatened to derail the airline industry's progress. Moreover, international traffic, which is usually more profitable for airlines, is critical for the sector as it tries to recover from pandemic-related losses and return to profitability.
Since the beginning of the year, the stock of Delta Air Lines has underperformed and could continue incurring losses in the coming weeks as the Omicron variant raises concerns among businesses all over the world.
In a recent filing with the Securities and Exchange Commission (SEC) in the United States, Delta Air Lines expressed that its leaders will discuss how they aim to increase profits next year and surpass pre-pandemic levels by 2024.
It is worth noting that among the top U.S. carriers, transatlantic flights accounted for roughly 17% of passenger revenue in 2019. Delta Air Lines alone recorded a 450% upsurge in overseas bookings in November.
However, increasing fuel costs made the airline forecast a pre-tax loss for the fourth quarter and it now anticipates fuel prices to be in the range between USD 2.20 and USD 2.30 per gallon, down from USD 2.25 to USD 2.40 as per the previous forecast.
In pre-market trading, shares of Atlanta-based airline climbed 2.40% after the business announced that it expects to make an adjusted pre-tax profit of USD 200 million in the December quarter.
Source Credits –