© Reuters. FILE PHOTO: A Delta Air Lines jet departs Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, U.S. December 22, 2021. REUTERS/Elijah Nouvelage
(Reuters) -Delta Air Lines on Thursday raised its current-quarter revenue forecast as Americans’ thirst for travel to Europe lifted demand for transatlantic flights.
Shares of the carrier, which also maintained its forecast for full-year profit, rose 2.7% before the bell.
Transatlantic travel is the industry’s most lucrative long-haul market, accounting for 11% to 20% of passenger revenue last year at the big three U.S. carriers: American Airlines (NASDAQ:), Delta Air Lines (NYSE:) and United Airlines.
The carrier said it expects third-quarter revenue to rise within the upper half of its forecast range of 11% to 14% growth.
However, the company slashed its quarterly forecasts for operating margin and profit as extended oil production cuts by Russia and Saudi Arabia drove the airline’s fuel expenses higher.
Atlanta-based Delta Air adjusted its estimate for fuel prices to a range of $2.75 and $2.90 per gallon for the current quarter, higher than the $2.50 to $2.70 per gallon it previously expected.
The carrier said it now expects a profit of $1.85 to $2.05 per share in the third quarter, down from its prior forecast of $2.20 to $2.50 per share.
