Delta Air Lines posts Q1 loss but forecast strong summer travel demand

Delta Air Lines has forecast strong travel demand for the second quarter, despite a wider loss in the first quarter than originally estimated. Delta’s CEO, Ed Bastian, said that air travel was a priority for consumers, despite cutbacks in other areas.

The Atlanta-based airline predicts sales in the current quarter to increase by 15% to 17% over last year, with adjusted earnings per share of between $2 to $2.25, ahead of analysts’ expectations.

Bastian revealed that the airline is dialing back its capacity growth plans for the summer, however, in an effort to improve reliability.

Delta said it plans to grow capacity 17% in the second quarter from a year earlier, though that won’t get the carrier back to 2019 levels as it previously planned.