Airlines Post Record Profits On the Heels of Busy Summer Travel Season

Airlines are reporting record third-quarter profits thanks to a busy summer travel season and cheaper jet fuel.

Delta Air Lines meanwhile, set records for passengers and revenue during the third quarter, increasing profits 13 percent to $1.5 billion, according to a statement issued by the airline.

PHOTO: Delta Air Lines Boeing 757-200 taking off from LAX. (photo via Laser1987/iStock Editorial/Getty Images Plus)

“Our powerful brand and competitive strengths drove another quarter of great results for our people, customers, and owners. Our people bring our brand to life on every flight and I’m pleased to recognize their outstanding efforts with over $1 billion in profit sharing accrued so far this year,” Ed Bastian, Delta’s CEO, said in a statement. “Demand for the Delta product remains healthy, positioning the company for a strong close to 2019 with expectations for more than 20 percent earnings growth, over $4 billion in free cash flow and a 5th year of pre-tax earnings over $5 billion.”

United CEO Oscar Munoz said the airline extended its streak during the third-quarter of expanding pre-tax margin on a quarterly basis.

Trending Now

“While headwinds affected the sector as a whole this quarter, United’s team once again demonstrated a robust ability to overcome adverse cost pressure, managing to continue growing our network while investing in winning our customers’ loyalty through smart enhancements to the United experience,” said Munoz.

Some of the headwinds that impacted United and other airlines include the grounding of the Boeing 737 Max after two fatal crashes, which resulted in thousands of canceled flights and lost revenue. (Delta doesn’t own any Max aircraft.)

Still, United has been growing aggressively around the country, increasing the number of flights between hub airports and smaller cities, Associated Press reported.

Even amid the record profits, Delta offered a cautious fourth-quarter forecast, according to Associated Press.

It’s also worth noting that Delta did experience a few hiccups this summer. The airline was caught short on pilots, which in turn led to a record amount of overtime flying, according to the pilots’ union.

Delta has said it is adding about 6,000 people a year to address increasing passenger traffic and it will replace up to 4,000 employees who leave or retire, Associated Press reported.

This post was published by our news partner: TravelPulse.com | Article Source |

Bobby Laurie
Bobby Laurie
His background in the travel industry dates back to November 2005 when he was initially hired as a flight attendant. After initially flying for six months for US Airways (now American Airlines) Laurie had started his move up the corporate ladder and held various positions within the industry before ultimately landing as an Analyst specializing in InFlight Policies & Procedures. Read More

HERE'S MORE

© 2023 On It Media, LLC. All Rights Reserved.

The Jet Set is a proud supporter of One Tree Planted.  Our support is made possible by our sponsors, advertisers, and most of all, by our viewers.