Delta Airlines forecasts a rapid revenue growth in 2020

Published on : Friday, December 13, 2019

Delta Airlines Delta Air continued its rapid revenue growth next year, thanks to strong consumer spending, particularly passengers who buy seats at the front of the plane. The guidance sent shares of the airline up by more than 4% in morning trading. The Atlanta-based airline expects revenue to grow by 4% to 6% in 2020 to about $49 billion, and per-share earnings to come in at $6.75 to $7.75, compared with $7.03 expected by analysts.

 

The most profitable U.S. airline will tell investors on Thursday about its plans to continue to bolster sales of its higher-priced products such as business-class seats. The airline’s executives have touted its ability to get travelers to pay more for seats and have said that would help it weather a potential downturn.

 

Delta’s premium-class revenue is growing at twice the rate of its revenue overall, the airline said in an investor day presentation, reaching an estimated $15 billion this year. The carrier’s credit card business — a partnership with American Express — is also expanding and will bring in about $4 billion this year and $4.4 billion in 2020, the airline said.

 

Delta doesn’t have the Boeing 737 Max in its fleet and Bastian said the airline didn’t see a “material benefit” from the grounding of the planes, now in its 10th month. Delta’s competitors American, United and Southwest have the Max in their fleets and have canceled thousands of flights because of the grounding.

 

Bastian brushed off concerns that the additional capacity in the market when the planes are cleared to fly would dent fares.

 

Investors will hear from Delta executives Thursday morning about other initiatives such as its partnerships with foreign airlines, including the newly announced deal with Latin America’s largest airline and longtime American partner, LATAM.

 

The carrier could also face questions about how new tariffs on Airbus jets would affect its bottom line.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

@CNBC

(No Like Yet)

Related Posts

Tags: ,

Comments are closed.

arrow2Follow TTW
 
facebook-logo  twitter-logo  LinkedIn_logo  rss_logo 
ttw_blogger_logo  ttw_blogger_logo

ADVERTISEMENT

  • 02 ITB asia 2020
  • 11 Aviation Festival Asia 2020
  • 12 ITE Hong Kong 2020
  • 13 IMEX 20
  • 15 Digital Travel EU 2020
  • 15 Routes Asia 2020
  • 16 G&A 2020
  • 16 TAAPE 2020
  • 17 AAA-banner 2020
  • 18 WCTIE 2020
  • 20 GWS-2020
  • 23 emitt 21
  • 30 PATA

TRAVEL INDUSTRY EVENTS

    1. BTL 2020

      May 27 - May 31
    2. AIR CONVENTION ASIA 2020

      June 9 - June 11
    3. HOTELEX 2020

      June 15 - June 18
    4. B-TRAVEL 2020

      June 19 - June 21
    5. Forum de l’Investissement Hôtelier Africain

      July 7 - July 9
Get our toolbar!
Review www.travelandtourworld.com on alexa.com