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Delta Air Lines Raises Quarterly Revenue Guidance Despite Escalating Fuel Costs
Delta expects Q1 revenue up to $15.3 billion with high single-digit growth; American forecasts over 10% growth despite $400 million fuel cost hits each, driven by strong travel demand.
- On Tuesday, Delta Air Lines and American Airlines raised first-quarter revenue forecasts, with Delta expecting high single-digit growth and American projecting over 10% sales increase.
- Momentum in main cabin, premium and loyalty sales explains the upward revisions, as said Delta CEO Ed Bastian, 'Jet fuel, for those unaware, has almost doubled since the start of the year.'
- The filings show rising fuel expenses, including a $45–$50 million incremental hit, with each carrier facing about a $400 million fuel shock this quarter, executives said.
- Shares moved higher in premarket and early trading after the guidance boost, with Delta and American expected to land at the lower end of earnings guidance due to rising jet fuel costs.
- American CEO Robert Isom said revenue growth is "progressing as we move throughout the year," while Delta CEO Ed Bastian noted 90% of revenue comes from premium and corporate travelers and reported eight of the top 10 sales days with revenue up 25% year-over-year.
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Delta CEO Says Demand Is 'Really, Really Great', Raises Revenue Guidance As Jet Fuel Doubles, TSA Shortages Continue - Delta Air Lines (NYSE:DAL)
Delta Air Lines (NYSE:DAL) CEO Ed Bastian told CNBC on Tuesday that travel demand has been “really, really great” despite a $400 million hit from surging jet fuel costs, as the airline raised its first-quarter revenue guidance at a JPMorgan investor conference. Delta now expects Q1 revenue growth in the high single digits, and to come in at the original earnings guidance, at 50 to 90 cents EPS, which he described as healthy growth. American Airl…
·New York, United States
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The airline has raised its unit revenue projection for the first quarter, now assuming that the operating revenue per mile available increases between 5% and 7% over the previous year.
·Brazil
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Coverage Details
Total News Sources13
Leaning Left1Leaning Right1Center5Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
14%
C 72%
14%
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