© Reuters. FILE PHOTO: A Delta Air Lines commercial aircraft approaches to land at John Wayne airport in Santa Ana, California U.S. January 18, 2022. REUTERS/Mike Blake
(Reuters) -Three major U.S. airlines raised their forecasts for current-quarter revenue on Tuesday, highlighting a recovery in air travel as the Omicron variant loosens its grip on the country.
Delta Air Lines Inc (NYSE:), United Airlines Holdings (NASDAQ:) Inc and Southwest Airlines (NYSE:) Co said demand for air travel was strong, allaying investor concerns about a hit to profit from rising fuel costs due to the Russia-Ukraine war.
Delta said it was expecting first-quarter adjusted revenue to be about 78% of pre-pandemic level, compared with 72% to 76% it had forecast earlier.
Southwest said it was expecting revenue to fall 8% to 10%, better than its previous estimate of a 10% to 15% fall.
United Airlines Holdings Inc said it expects a fall in first-quarter operating revenue to be at the “better” end of its prior forecast of 20% and 25% drop, compared with pre-pandemic levels.
The airline, though, cut its full-year capacity forecast due to rising fuel prices and aircraft delivery delays.
United now expects 2022 capacity to be down in high single digits versus 2019. It had previously cut capacity forecast in January.
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