Delta Air Lines is ahead of its profit targets for the year following a strong summer performance.
The US carrier achieved an operating profit of $1.5 billion on revenue of $12.8 billion in the three months to September.
The revenue figure was 3% high than the same three months in pre-pandemic 2019 despite a $25 million hit from the impact of cancellations and a bookings downturn in areas affected by Hurricane Ian.
Transatlantic demand was driven by leisure destinations such as Italy, Spain and Greece and improving business demand, with revenue up 12% compared to 2019.
Chief executive Ed Bastian said: “Thanks to the incredible work of our entire team, Delta delivered a strong September quarter with record quarterly revenues and a double-digit operating margin.
“The travel recovery continues as consumer spend shifts to experiences and demand improves in corporate and international.
“In this environment, we expect December quarter revenue growth to accelerate versus 2019 with an operating margin of approximately 10%.”
He added: “With strong demand and a return to best-in-class operational performance, we are ahead of our plan for the year on profitability and expect to be free cash flow positive.
“We’re working towards full network restoration by summer of 2023, which supports a meaningful step up in profitability and cash flow next year.”
Delta president Glen Hauenstein said: “With corporate travel improving and robust domestic and international demand, we expect December quarter revenue to be up 5% to 9% compared to December quarter 2019.”
“We repaid $1.8 billion of debt during the quarter, bringing year-to-date debt repayment to more than $4 billion,” Janki said. “We remain committed to strengthening our balance sheet, targeting adjusted net debt of $15 billion and investment grade metrics by 2024.”
Chief financial officer Dan Janki added: “We repaid $1.8 billion of debt during the quarter, bringing year-to-date debt repayment to more than $4 billion.
“We remain committed to strengthening our balance sheet, targeting adjusted net debt of $15 billion and investment grade metrics by 2024.”