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Delta Air Lines confirms its annual profit forecast based on sustained travel demand

Delta Air Lines reaffirmed Thursday its full-year earnings forecasts and current-quarter earning predictions, betting on sustained demand for travel in the U.S.

The carrier has also increased the lower end its revenue forecast for the third quarter to September. It now expects growth of 2%-4% from its previous projection of 0%-4% growth.

This buoyant mood is in stark contrast with earlier this year when many U.S. airlines issued gloomy predictions as President Donald Trump’s tariffs, budget cuts and other measures weighed on demand.

In July, major airline executives expressed confidence that the industry would be able to increase airfares by the end of the year.

According to the latest Bureau of Labor Statistics data, airfares increased by 4% in July.

During the holiday season, more Americans took advantage of the travel discounts and deals to fly within the United States or abroad. Reporting by Nathan Gomes in Bengaluru and Utkarsh Setti; editing by Pooja Deai

(source: Reuters)