Delta Posts Third-Quarter Profit

In what airlines are hoping is a harbinger of good things to come for the industry, Delta Air Lines this morning announced a third-quarter earnings profit.

It was modest. And it wasn’t at 2019 levels. But a profit is a profit, and Delta’s first quarter is on the plus side without taking federal aid into account since the start of the COVID-19 crisis almost 20 months ago, according to CNBC.

The third-quarter profit of $1.2 billion and revenue of $9.15 billion beat analysts’ estimates, although revenue was 19 percent less than the $11.4 billion it brought in in the same quarter in 2019.

The carrier cautioned however that rising fuel prices could inflate costs by six to eight percent in the fourth quarter. Still, Delta said it would fly 80 percent of its 2019 capacity during the holiday season, up from 71 percent in the most recent quarter.

“While demand continues to improve, the recent rise in fuel prices will pressure our ability to remain profitable for the December quarter,” Delta’s CEO Ed Bastian said in an earnings release. “As the recovery progresses, I am confident in our path to sustained profitability as we continue to provide best-in-class service to our customers, strengthen preference for our brand, while creating a simpler, more efficient airline.”

Other domestic carriers are expected to announce third-quarter earnings through the rest of the week and into next week.