Delta Air Lines Beats Profit Estimate But Revenue Falls Short

Delta Air Lines said Thursday it had net income of $1.26 billion, or $1.69 a share, in the third quarter, compared with $1.32 billion, or $1.65 a share, in the year-earlier period. Adjusted per-share earnings came to $1.70, ahead of the FactSet consensus of $1.65. But revenue fell 5.6% to $10.48 billion, below the FactSet consensus of $10.53 billion. "With our focus on building a more sustainable and durable business, we will be taking a cautious approach to 2017 by keeping our capacity in line with the December quarter's 1 percent growth level," Chief Executive Ed Bastian said in a statement. The airline is expecting a slight decline in margins in the fourth quarter, as savings from lower fuel prices and cost cutting are offset by declines in unit revenues. Shares rose 0.7% premarket, but are down 22.5% in the year so far, while the S&P 500 has gained 4.7%.