Delta Air Lines posts strong Q3 results as travel continues to boom

TheStreet’s J.D. Durkin brings you the biggest news of the day, including a fresh batch of economic data and how Delta fared in Q3.

Transcript

00:00 I'm JD Durkin reporting from the New York Stock Exchange and here's a look at what we

00:03 are watching on the street today.

00:05 Investors are reacting to a hotter than expected Consumer Price Index report.

00:09 The latest figure showing that consumer prices rose faster than expected in the month of

00:13 September, up 0.4 percent, slightly above the 0.3 percent estimate.

00:19 Combined with this week's inflation report, which saw wholesale prices jump for the third

00:23 consecutive month, it means investors are concerned that this persistent inflation will

00:28 keep interest rates higher for longer.

00:30 The Federal Reserve will make another decision on rates when it meets on October 31st.

00:35 Meanwhile, air travel continues to make a comeback.

00:38 Delta Airlines reported its third quarter earnings this morning and it continues to

00:43 use the company's own slogan, "Keep Climbing."

00:46 The airline reported a 60 percent jump in Q3 revenue as strong travel demand has continued

00:51 even after the busy summer season.

00:54 Eighty-eight percent of Delta flights for the quarter were full and the company highlighted

00:58 there was particularly strong demand for international travel, with revenue for transatlantic flights

01:03 up 34 percent compared to this time last year.

01:07 And it's not just leisure travel on the upswing.

01:10 Delta CEO Ed Bastian is saying that business travel has recovered by more than 80 percent

01:15 compared to 2019 pre-pandemic levels.

01:18 However, it's not exactly all good news for Delta.

01:21 Due to rising fuel prices, the company is now forecasting its full year earnings on

01:25 the lower end.

01:26 Jet fuel prices are up about 20 percent over the last three months.

01:30 United Airlines and American Airlines are set to report their third quarter results

01:34 next week.

01:35 That'll do it for your daily briefing.

01:36 From the floor of the New York Stock Exchange, I'm J.D. Durkin with The Street.

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