Delta Air Lines shares closed higher on trading on Wall Street on Thursday after the carrier reported better-than-expected second quarter profits.
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|DAL||DELTA AIR LINES INC.||48.19||-1.40||-2.82%|
Delta’s revenue was $12.5 billion in the three months through June, a nearly 9 percent year-over-year increase and in line with investor expectations. Meanwhile, profits rose 32 percent to $2.35 per share, higher than Wall Street predicted.
As a result of the strong earnings report, Delta raised its full-year profit outlook to as high as $7.25 per share.
“Our record June quarter financial and operating results demonstrate that we are translating our powerful brand and competitive advantages into earnings growth, margin expansion and solid returns for our owners,” CEO Ed Bastion said in a statement.
Underscoring the results was a 10 percent increase in premium ticketing. Overall, passenger unit revenue, or PRASM, rose 3.6 percent in the quarter.
Delta now expects company-wide revenue to grow as much as 7 percent in 2019. The carrier also had a record revenue day on July 7, according to president Glen Hauenstein.
The Atlanta-based company does not have any Boeing Max jets in its fleet, which has allowed it to avoid the issues rivals like American Airlines, United Airlines and Southwest Airlines have experienced due to an international grounding of the plane after two fatal crashes. Those carriers previously extended the potential for flight cancellations due to the Max scandal through Labor Day.
|LUV||SOUTHWEST AIRLINES CO.||46.63||-2.27||-4.64%|
|AAL||AMERICAN AIRLINES GROUP INC.||20.60||-1.71||-7.66%|
|UAL||UNITED AIRLINES HLDG.||64.94||-1.59||-2.39%|
Delta's capacity rose nearly 5 percent in the quarter, while American on Wednesday said it decreased capacity.