Delta Air Lines (Delta)has reported a 29% decline in second-quarter profit due to higher costs and discounting of base-level fares across the industry. Despite this, the airline still earned US$1.31 billion during that period. The company's revenue rose by 7% to nearly US$16.66 billion, setting a new record for the quarter. Delta CEO Ed Bastian emphasised the need for low-cost carriers to slow their growth and address the oversupply of seats on domestic routes.
As a result of this news, Delta's shares fell by 6%. For the third quarter, Delta predicts an adjusted profit between US$1.70 and US$2.0 per share, which is below analysts' expectations. Despite the challenges, demand remains strong, especially in the international and premium sectors.
Delta's CEO, Ed Bastian, commented on the results, stating, “While we faced a challenging quarter with higher fuel prices and operational headwinds, we remain focused on delivering value to our customers and shareholders. Our team is working diligently to navigate these obstacles and implement strategic measures to improve efficiency and profitability.”
Despite the profit decline, Delta reported some positive developments. The airline saw a 4% increase in passenger traffic compared to the same quarter last year, driven by strong demand for both domestic and international travel. Delta also noted an improvement in customer satisfaction scores, reflecting the company's ongoing efforts to enhance the passenger experience.
