Delta Air forecasts first-quarter profit largely above estimates

Delta Air Lines reaffirmed its first-quarter profit forecast on Tuesday on resilient international travel demand. Major U.S. airlines with international operations have experienced a surge in demand for long-haul flights, as a stronger dollar prompts more Americans to consider overseas travel for leisure. Airlines have also benefited from a post-pandemic boom in demand for high-margin premium services.

The airline expects its first-quarter adjusted profit per share in the range of 25 cents to 50 cents per share, compared with analysts' average expectations of 36 cents. It also expects to deliver year-over-year total revenue growth in the top half of the initial guidance range for the March quarter. The company had earlier forecast first-quarter revenue growth in the range of 3 per cent to 6 per cent. Delta also reaffirmed its 2024 profit per share forecast of $6 to $7.