Delta Rises on Earnings Beat, Positive Commentary
Delta Air Lines (DAL:US) shares rose more than 3% in early Thursday trade after the company reported third-quarter results that exceeded analyst expectations.
Delta reported earnings of $2.03 per share and revenue of $14.6 billion. Analysts had predicted earnings of $1.95 per share on revenue of $14.5 billion.
“Delta delivered record September quarter revenue and a double-digit operating margin. Our operational reliability continues to strengthen, thanks to our people, and I'm pleased to recognize their outstanding efforts with over $1 billion accrued year-to-date towards profit sharing," said Ed Bastian, Delta's chief executive officer.
Delta's robust demand for travel is expected to continue into the December quarter, with a projected total revenue growth of 9 to 12 percent compared to the same quarter in 2022.
This positive outlook helps alleviate concerns related to the end of the peak summer travel season and the impact of inflation.
Furthermore, Delta is receiving good news regarding fuel costs, which have been a source of concern due to rising oil prices and potential market disruptions following the recent attack on Israel.
“For the December quarter, we expect non-fuel unit costs to be flat to 2% higher year-over-year as we realize the benefits of scale and efficiency while making investments in our people and operational reliability,” said Dan Janki, Delta’s chief financial officer.
Congress members Ro Khanna and Daniel Goldman were trading DAL shares this year.
