Delta Air Lines expects June quarter revenue at 2019 levels

Delta Air Lines Inc (NYSE:DAL) said on Wednesday it expects second-quarter adjusted revenue at pre-pandemic levels due to the easing of COVID-19 curbs and bottled-up travel demand.

The company’s shares were up 2.4% at $42.50 in premarket trading after the airline raised its operating margin outlook for the current quarter to 13%-14%, compared with its previous outlook of 12%-14%.

U.S. airlines have been buoyed by how quickly travel snapped back from the depths of the pandemic, leaving them struggling to add capacity in part due to staff shortages.

Atlanta-based Delta expects second-quarter free cash flow of $1.5 billion and adjusted net debt below $20 billion, the airline said in a presentation to investors.

The upbeat outlook comes on strong travel demand, despite concerns that rising inflation may weigh on consumer spending.

Last week, Southwest Airlines (NYSE:LUV) Co and JetBlue Corp Airways also gave upbeat revenue forecasts for the current quarter.