Issue Summary

Second quarter earnings season is underway, ushered in with solid performance from Delta. The Atlanta-based giant earned a double-digit operating margin for the spring quarter, a welcome lift from its loss-splattered results during two years of pandemic misery. Delta is not quite making money like it was in 2019. Fuel costs are much higher now, and capacity much lower now, the latter causing low asset utilization and, by extension, inflated non-fuel unit costs. Also weighing on Delta’s results was the severe operational distress plaguing much of the airline industry. The difficulties of restaffing after a pandemic-era contraction is one reason,…