Delta to open US airline earnings season with costs and demand under scrutiny

Delta Air Lines reports third-quarter results on 9 October, the first US carrier to do so. The July-September quarter ran against rising costs and softer travel demand.

Global passenger demand fell nearly 1% year on year in August, according to IATA traffic data, after modest growth in July. Middle East carriers saw the sharpest decline, down almost 15% from a year earlier. IATA chief economist Marie Owens Thomsen said global connectivity was also generally weaker in August. The coming months would show whether higher energy prices and geopolitical instability lead travellers to trim their budgets, she said.

Costs may matter more to airline profits than demand. Brent crude fell to almost $70 a barrel in June but has since climbed above $100. Lufthansa Group chief executive Carsten Spohr told reporters this month that the group's fuel bill is expected to rise by more than the additional €1.5 billion ($1.7 billion) it projected when it reported second-quarter results in August.

Delta's results will give the first read on how US airlines fared through the quarter.