Delta Reports Third-Quarter Profit of $1.2 Billion, Praises Holiday Bookings

Delta Reports Third-Quarter Profit of $1.2 Billion, Praises Holiday Bookings

The airline said that travel demand is improving after hitting a flat spot when COVID-19 infections in the U.S. jumped over the summer, fueled by the rise of the so-called delta variant. “We are seeing bookings pick up materially over the past four or five weeks,” CEO Ed Bastian said. “As the variant has receded, people are starting to get back out.”

The airline also expects higher labor costs as it hires thousands of employees to replace some of those who left the company last year, when the pandemic’s impact on travel was most brutal. Delta shares fell more than 4% in morning trading. Business and international travel continue to lag, however — corporate travel stalled at about 40% of its pre-pandemic level. Airlines are hoping for a boost as more workers return to their offices and as the U.S. relaxes border restrictions in November.

Delta is rebuilding more of its previous schedule. The airline operated at 71% of its 2019 passenger-carrying capacity in the third quarter and expects that to rise to 80% in the fourth quarter. That will help revenue rise slightly, to more than 70% of where it stood in late 2019, the airline forecast. PoliticsSocial Security COLA largest in decades as inflation jumpsFDA spells out lower sodium goals for food industryAim to ease supply chain bottlenecks with LA port going 24/7US talks global cybersecurity without a key player: Russia

For the most part, Delta has avoided the high numbers of canceled and delayed flights that have affected rivals, like the meltdown that caused Southwest Airlines to cancel nearly 2,400 flights from Saturday through Monday. Delta had just over 20 cancellations in the same three days, according to FlightAware. In a thinly veiled critique of Southwest, Bastian said Delta has been more conservative about adding flights until it has enough employees to operate them. “Some carriers have tried to be opportunistic over the course of the pandemic to take market share, and some carriers have been a little more disciplined,” he said during an interview. “I think you see the effects.” Delta is also setting its own course on vaccine policy. The company is pushing employees to get vaccinated against COVID-19 and will impose a $200 monthly health insurance surcharge on unvaccinated employees next month.

But unlike its rivals — and in a seeming challenge to the White House — Delta continues to offer regular testing as an alternative to the shots. Major U.S. carriers have government contracts to provide airlift flights, and a recent order by President Joe Biden requires federal contractors to vaccinate their employees by Dec. 8; testing is not an option for contractors and their employees. Bastian said he has discussed the matter with administration officials, but he declined to detail those talks. He argues that if Delta can ensure that a very high percentage of employees get vaccinated, that should be good enough. He said 90% of Delta employees are already vaccinated and it will be 95% by November. “Mandates are one way to get people vaccinated,” he said. “What we’re showing is there are alternative means by which we can get people vaccinated and still meet the substance of the requirements. We will assess if we need to, but I trust we’ll be effectively vaccinated.”

The News Highlights

  • Delta Reports Third-Quarter Profit of $1.2 Billion, Praises Holiday Bookings
  • Check the latest update on business news
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Fire burns aboard container ship in British Columbia
Fire burns aboard container ship in British Columbia
“No injuries were reported. The fire appears to have been contained,” Danaos Shipping Co, the company that manages the container ship, said in a emailed ...
Save $80 on the Bose QuietComfort Noise Cancelling Earbuds
Save $80 on the Bose QuietComfort Noise Cancelling Earbuds
But Bose was one of the first to ever do it. Now, with their Bose QuietComfort Noise Cancelling Earbuds you’ll be able to finally get some peace and quiet- ...
Kyrie Irving skips COVID jab and benches himself - for now
Invoice financing is gaining in popularity as demand for credit returns
The IAIFA said €2.7bn in funding was currently available through its members, which include the commercial finance arms of traditional banks as well as ...
MORNING BUSINESS REPORT: Student loan is not worth it, help with internet account, large wind farm News
Charter School Leader Must Leave After Hedge Fund Losses
The school opened in 2004 with 200 ninth- and 10th-graders, according to its website, and since has undergone several expansions on what now is a sprawling ...
Sensata Technologies Reports First Quarter 2021 Financial Results
Committee governance is no way to spend COVID’s relief money
However, even if the courts decide the LCB was correct in its politically convenient reading of the law, the decision to allow a mere one-third of lawmakers ...
Metal Detection Enthusiasts Raise Money for Augusta Health Breast Imaging Center
Metal Detection Enthusiasts Raise Money for Augusta Health Breast Imaging Center
“It’s pretty cool to find something. When you first find it, you have really no idea what it is, and then you do some research and learn about it and determine ...
For all kind of users, the best budget headphones
For all kind of users, the best budget headphones
And sometimes, for quick commutes or even as an ever-reliable back-up option, such pairs are just the ticket. Because you don’t have to pay through the nose ...
Global Processing Services raises $300 million with its API-based payments and embedded finance platform - TechCrunch
Infrastructure boost means business for the company E. Helena
Today, M.E.T. has six employees, and they’re planning to bring on another. While they put the panels together themselves, they purchase all the individual ...
Crypto Shadow Banking explained and why 12% of earnings are common
Real Estate Transactions for Sunday, October 24, 2021 | News and Economy
Chien, Joshua and Jenny, Fremont, Calif., to Sedam, Frannie, East Moline; 558 34th Ave., East Moline; $133,000. Filbert Family Trust, Mesa, Ariz., to Smeltzly, ...
$279 A full year of unlimited service is included with the Celero5G camera phone.
$279 A full year of unlimited service is included with the Celero5G camera phone.
“Our goal at Boost is to empower our customers with what they need, when they need it,” said Stephen Stokols, head of Boost Mobile. “Subscribers have told us ...
Show next
Compsmag - Latest News from tech, business and health
Logo