Delta Air Lines has announced a surge in advanced bookings for the upcoming summer season, signaling a promising recovery for the U.S. airline industry after the setbacks caused by the pandemic.
However, despite the positive news, the company faced challenges due to increasing labor costs, resulting in a net loss for the period. Although Delta reported a profit when excluding special items, which is the metric most closely monitored by investors.
During the first quarter of the year, the Atlanta-based airline generated $163 million in earnings, excluding special items. This marked a significant improvement from the $784 million loss experienced in the same period the previous year. Furthermore, the revenue reached $11.8 billion, reflecting a 45% increase from the prior year and a 14% rise compared to the pre-pandemic period in 2019.
The heightened demand for air travel has led to higher fares for customers. The revenue per mile flown by Delta increased by 17% compared to both the previous year and the same period in 2019.
Additionally, when accounting for capacity, an essential measure of fares, the total passenger revenue surged by 27% compared to the previous year and 14% compared to the pre-pandemic period in 2019. Furthermore, Delta's planes were operating at higher capacity, with the airline selling 81% of available seats, up from 75% the previous year.