Delta Spurs Leisure Rally, Projecting Summer Travel Rebound
- ‘Booking activity has been quite strong,’ says CEO Ed Bastian
- First-quarter sales, adjusted loss beat analysts’ estimates
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Delta Air Lines Inc. spurred a rally among airline and leisure stocks as it said a strong rebound in summer travel bookings will help the carrier overcome rising fuel costs and a slow return of business travel.
While the airline posted a first-quarter loss, it stood firm with previous projections that it would be profitable for the year’s remaining periods. Delta is sensitive to the risk that fare hikes will erode demand but sees no sign that’s happening.