So far it’s unanimous: On Wednesday, June 1, Delta Air Lines (DAL) joined United Airlines (UAL) and Southwest (LUV) in projecting rising demand in the second quarter, higher fuel costs, and staffing shortages severe enough to lead to cuts in flights.
Delta said it expected second-quarter sales to rebound to 2019 levels. That’s above the company’s last outlook. But forecast higher-than-anticipated costs.
Delta said it expected unit revenue, a gauge of revenue in relation to an airline’s flight capacity, to be “7 to 8 points better than initially expected.” Part of that increase is due to cuts in the company’s flight schedule. And some is due to pricing strength across leisure, business, and international travel.
Delta said it expected fuel prices per gallon to be $3.60 to $3.70, well up from a prior forecast of $3.20 to $3.35.
Shares of Delta were up 1.14% today, Thursday, June 2. The stock is a member of my Jubak Picks Portfolio where it shows a 0.76% gain since I added it to the portfolio on January 31, 2022.
