Delta Air Lines reported earnings per share of $1.72 for the third quarter, slightly below the expected $1.75, and net income fell 47% year-over-year to $756 million. The airline has adjusted its full-year earnings forecast to between $5.10 and $5.60 per share, down from a previous estimate of $6.50 to $7.50, largely due to a $6 billion increase in fuel costs.
Despite these challenges, CEO Ed Bastian noted that demand remains robust, with a 20% revenue increase expected in the fourth quarter compared to last year. Delta's premium revenue grew 18% to $6.82 billion, indicating a shift in consumer spending towards higher-end travel options.
However, the overall impact of rising fuel prices and inflation, which has seen airfare increase by over 23% year-on-year, poses significant risks to the airline's profitability and cash flow, which has been revised down to $2.5 billion from a previous estimate of up to $4 billion