Delta Air Lines posts Q1 profit, says demand remains

Delta Air Lines eked out a narrow first-quarter profit and said Wednesday that demand for travel is strong heading into the summer vacation season, with travelers seemingly unfazed by recent incidents in the industry that ranged from a panel blowing off a jetliner in flight to a tire falling off another plane during takeoff.

Delta reported the highest revenue for any first quarter in its history and a $37 million profit. It expects record-breaking revenue in the current quarter as well. The airline said that second-quarter earnings will likely beat Wall Street expectations.

CEO Ed Bastian said Delta’s best 11 days ever for ticket sales occurred during the early weeks of 2024.

If travelers are worried about a spate of problem flights and increased scrutiny of plane maker Boeing, “I haven’t seen it,” Bastian said in an interview. “I only look at my numbers. Demand is the healthiest I’ve ever seen.”

A slight majority of Delta’s fleet of more than 950 planes are Boeing models, but in recent years it has bought primarily from Airbus, including a January order for 20 big Airbus A350s. As a result, Delta will avoid the dilemma facing rivals United Airlines and American Airlines, which can’t get all the Boeing planes they ordered. United is even asking pilots to take unpaid time off in May because of a plane shortage.

“Airbus has been consistent throughout these last five years (at) meeting their delivery targets,” Bastian said.

Delta does not operate any Boeing 737 Max jets, the plane that was grounded worldwide after two fatal crashes in 2018 and 2019, and which suffered the panel blowout on an Alaska Airlines flight this year. However, the Atlanta-based airline has ordered a new, larger version of the Max that still hasn’t been approved by regulators. Bastian said Delta will be happy to use the Max 10 when they arrive.

While Delta has largely dodged headaches caused by Boeing, it faces other obstacles in handling this summer’s crowds.

Delta is lobbying the federal government to again allow it to operate fewer flights into the New York City area. Otherwise, Delta could lose valuable takeoff and landing slots.

The Federal Aviation Administration granted a similar request last summer and even extended it until late October. The FAA said the relief helped airlines reduce canceled flights at the region’s busy three main airports by 40%.