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

  • 01 WTM 2020
  • 02 WTM London 2020
  • 06 ITB Asia 2020
  • 06 SATTE-GenX-Virtual-Expo
  • 13 traveldaily20
  • 16 FHC 2020
  • 16 G&A 2020
  • 16 ITB asia 2020
  • 16 TAAPE 2020
  • 17 GWS-2020
  • 23 emitt 21
  • 30 PATA

TRAVEL INDUSTRY EVENTS

    1. routes asia

      October 8 - October 10
    2. FOIRE DE TOURS 2020

      October 10 - October 18
    3. Aviation festival americas

      October 15 - October 16
    4. Mediterranean Resort & Hotel Real Estate Forum (MR&H)

      October 19 - October 21
    5. wtm LATIN AMERICA

      October 20 - October 22
Get our toolbar!
Review www.travelandtourworld.com on alexa.com