(Reuters) – Delta Air Lines Inc 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 Co and JetBlue Corp Airways also gave upbeat revenue forecasts for the current quarter.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta)
