Delta Air Lines (NYSE:DAL) is optimistic about robust air travel demand continuing into the winter holiday period, following the success it experienced during Thanksgiving last month. Bolstered by the impressive Thanksgiving traffic, November emerged as the strongest month for the carrier in 2023, setting a positive tone for the year’s conclusion.
Leveraging the favorable air travel environment, Delta foresees a substantial influx of passengers during the winter holiday travel period, spanning from December 21, 2023, to January 7, 2024. The airline anticipates serving approximately 9 million travelers during this period, and if this projection materializes, it would significantly enhance Delta’s fourth-quarter 2023 results. In anticipation of increased demand during the winter holidays, Delta has strategically expanded its route offerings.
During the 2023 Thanksgiving holiday period, Delta witnessed the travel of 6.4 million customers on its flights between November 17 and November 28. This performance aligned with Delta’s expectations of attracting between 6.2 million and 6.4 million passengers during that timeframe. Notably, there were five brand days during this period, where no flights operated by Delta and Delta Connection carriers were canceled. In total, Delta has recorded 30 brand days in the current year, with 10 of them occurring in November.
The positive air traffic scenario has translated into a notable uptick in DAL shares, which have gained 15.2% over the past month. This outperformance exceeds the industry average, which experienced an 11.3% increase during the same period. The promising trend in Delta’s share performance reflects the confidence of investors in the airline’s ability to capitalize on strong demand and navigate the challenges of the current operating environment.
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