Delta Keeps Summer Capacity Stable
April 10 2019 - 7:38AM
Dow Jones News
By Doug Cameron and Kimberly Chin
Delta Air Lines Inc. said Wednesday it would keep capacity
stable into the key summer travel season in a move that will help
allay investor fears that carriers are adding too much flying and
depressing leisure fares.
The nation's third-largest carrier by traffic expects to boost
capacity by 4% to 5% in the second quarter while keeping its
closely watched average revenue climbing in a band of 1.5% to
3.5%.
While the grounding of the Boeing Co. 737 Max has artificially
reduced the rate of expansion by U.S. carriers, more flights are
being added and only solid business-class demand has counteracted
weakness in leisure markets, particularly on some coast-to-coast
routes and to and from the Caribbean, two Delta strongholds.
Still, Delta reported quarterly profits at the top end of
analysts expectations, reset after an investor update last week,
and second quarter guidance was also in line, lifted in part by the
benefit of a new credit-card deal with American Express Co.
Delta reported a 28% rise in profits for the quarter to March
31, while costs excluding fuel dipped slightly.
Write to Doug Cameron at doug.cameron@wsj.com and Kimberly Chin
at kimberly.chin@wsj.com
(END) Dow Jones Newswires
April 10, 2019 07:23 ET (11:23 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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