(Reuters) -Delta Air Lines on Thursday reaffirmed its full-year and current-quarter earnings forecasts, betting on sustained travel demand in the U.S.
The carrier also raised the lower end of its revenue outlook for the third quarter through September, now expecting growth of 2% to 4%, from its prior projection of 0% to 4% growth.
The buoyant sentiment is in stark contrast to earlier this year, when several U.S. carriers issued gloomy expectations as President Donald Trump’s tariffs and budget cuts weighed on travel demand.
Travel demand has since rebounded, with major airline executives in July expressing confidence in the industry’s ability to boost airfares in the latter part of the year.
The latest data from the Labor Department’s Bureau of Labor Statistics also showed that airfares rose 4% in July.
More Americans also took advantage of travel deals and discounts during the holidays to get away on flights within the country or abroad.
(Reporting by Nathan Gomes and Utkarsh Shetti in Bengaluru; Editing by Pooja Desai)
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