THE FINANCE GHOST: Delta Air Lines finds US customers have money, will travel

In today’s edition of First World Problems, we find Delta Air Lines telling the market that fares in the northern summer have risen by as much as 50% in the domestic market. To quote the CEO: “People didn’t care where they were going or how much they spent.”

In that environment, it’s not surprising that the company has just announced delicious quarterly results, with record revenue and earnings. Revenue was up 19% year on year and operating margin was 17%, proving that aviation businesses can be lucrative when run properly and operating in a market with high levels of disposable income. Both those ingredients are necessary. ..

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