Delta Air Lines profit boosted by international demand but US trends weaker

Delta Air Lines reported a record in quarterly revenue on a 35% jump in international travel, the air carrier said on Thursday.

The Atlanta-based company said it expects strong international travel demand to continue through the fall, while also predicting record profitability in Transatlantic, South American and Latin American revenues.

It forecast an adjusted operating margin of 9% to 11% in the fourth quarter, with a 9% to 12% year-on-year increase in revenue.

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Over the quarter, Delta posted a 13% increase in adjusted operating revenue from the same quarter in 2022 at $14.6 billion, while recording $2 billion in operating income at an operating margin of 13.5%.

A jump in fuel costs, however, is pressuring profits. Delta now expects adjusted earnings of $6 to $6.25 per share this year, compared with $6 to $7 per share estimated in July.

It reported an adjusted profit of $2.03 per share for the third quarter, above analysts' expectations of $1.95, according to LSEG data, helped by a 35% rise in international passenger revenue from a year ago.

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In the December quarter, the airline expects adjusted earnings in the range of $1.05 to $1.30 per share. That compares with the $1.11 estimated by Wall Street analysts.

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