Delta Profit Beats, But Revenue Falls Short Of Estimates

Delta Air Lines said Thursday it had net income of $1.546 billion, or $2.03 a share, in the second quarter, compared with $1.485 billion, or $1.83 a share, in the year-earlier period. Adjusted per-share earnings came to $1.47, ahead of the FactSet consensus of $1.42. Revenue fell 2% to $10.447 billion, below the FactSet consensus of $10.479 billion, hurt by currency moves. "With the additional foreign currency pressure from the steep drop in the British pound and the economic uncertainty from Brexit, Delta has decided to reduce 6 points of U.S.-U.K. capacity from its winter schedule," the company said in a statement. That move and other planned actions will reduce system capacity by about one point in the December quarter. "While the revenue environment remains challenging, with persistent headwinds from close-in domestic yields and geopolitical uncertainty, we remain focused on achieving our goal of positive unit revenues by year end," said Glen Hauenstein, Delta's president. Shares rose 2.4% premarket, but are down 22% in the year to date, underperforming the S&P 500, which has gained 5%.