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Planes have been set up for epidemic stages this summer, and this will allow airlines to raise enough money to cover high fuel costs – and to some extent.
Delta Airlines reported $ 735 million in the second quarter. Shares on Wall Street fell short of expectations, but the airline said it had been canceled due to high fuel prices in May and June and more than 4,000 flights.
“We had a difficult six weeks,” said Ed Bastian, CEO. “This is a company, this is an industry … None of us were as good as we could be.”
Shortly before July 4, airline leaders insulted Transport Secretary Pete Boutigig in an imaginary meeting, urging passengers to do better during the holiday weekend. They did – even though the airline and federal officials have been guilty of major delays and cancellations until this summer.
The Atlanta service provider had very canceled flights on Memorial Day and the weekend of June 19. According to Bastian, Delta and other airlines have been working hard for two years to compensate for the epidemic and earn as much revenue as they can when it is hot. “We may have pushed ourselves too hard,” he said in the interview.
Bastian added that Delta was able to reverse this year’s plan by continuing to hire pilots and other staff and give passengers more time to board.
The airline canceled 337 flights or 1 percent of its schedule in the first 11 days of July, and just after July 3, 83 after July 3, it made significant progress over the summer, according to Flightaware.
Meanwhile, US Airways announced a 10 percent increase in pre-tax profits for the second quarter as airline packs for the second quarter on Tuesday. The airline said it would earn $ 585 million in pre-tax revenue in May-June.
The US reiterated that 2019 will be 12 percent higher than in the same quarter. Raymond James analyst Savanti City said it was a “great achievement” in dealing with “industrial issues” and that there were frequent flight delays. And cancellations this summer.
Airlines are making higher revenues when they return faster than expected, but are increasing fuel costs. The American paid $ 4.00 to $ 4.05 per gallon for the quarter, and paid eight cents more than expected.
The American in Fort Worth, Texas, is scheduled to report second-quarter results on July 21.
Is Labor Day flight problem ahead of us?
While the holiday season is in full swing, analysts are cautioning about the time after Labor Day. Once families go home and children return to school, the crucial business trip for airlines does not recover as quickly as a private trip. Employers are still hiring, but there is talk of further economic downturn. Consumers are concerned about inflation.
Delta consumers are still speculating that they still want to travel and that they have money, in part because they no longer buy much at home.
Delta predicts third-quarter earnings by 1 percent to 5 percent in the same quarter of 2019, although it expects passenger capacity to not exceed 85 percent by 2019 – a sign that Delta is expecting higher prices. Stay in place.
Oil prices have recently cooled, and this could lead to another move to the Delta. The airline spent more than $ 3.2 billion on oil in the second quarter. Compared to the same quarter in 2019, it increased by 41 percent. Delta paid an average of $ 3.82 a gallon for jet fuel but expects to pay between $ 3.45 and $ 3.60 a third. Quarter.
Other costs, including labor, are increasing. Delta expects non-oil spending to jump 22 percent from 2019 levels in the third quarter.
In April-June, the revenue was $ 13.82 billion and $ 1.5 billion from the Delta refinery near Philadelphia. Revenue-deficit filtered by less than 1 percent in the same quarter of 2019, due to poor international traffic.
Passengers traveled less than 18 percent on the Delta three years ago, but revenue per mile – for the average tariff – increased by 18 percent.
Those high tariffs did not discourage travelers, or at least most of them. The average flight was 87 percent full, just one point lower than at the start of the 2019 summer season. At the airline level, this is a high residency figure and shows that many flights are sold in the morning and evening.
Delta said it earned $ 1.44 per share, excluding informal expenses. That is less than the $ 1.73 share expected by FactSet survey analysts.
Costs have increased significantly for oil and labor compared to 2019, but Delta paid $ 54 million a share of $ 518 million three years ago.
Delta’s stock fell 3 percent before the market opened and other major airlines collapsed.
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