Delta raises 2019 profit outlook on strong demand as rivals grapple with Boeing 737 Max grounding

Earnings

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Delta Air Lines shares rose Thursday after the Atlanta-based carrier raised its profit forecast for the year amid strong travel demand.

The Atlanta-based carrier expects to earn $6.75 to $7.25 per share this year, up from a previous estimate of $6 to $7 a share. Shares rose up more than 2% in premarket trading after it reported results.

Delta’s second-quarter profits rose 30% from a year ago and topped analysts’ expectations, as strong demand, particularly for premium-class cabins and corporate travel lifted results.

Delta posted a per-share profit of $2.35, on an adjusted basis, on record revenue of $12.5 billion, roughly in line with estimates. Higher revenue from premium cabins and corporate travel helped drive sales higher, the airline said. Net income rose to $1.4 billion from $1.04 billion in the April-June quarter of 2018.

Delta expects earnings per share of $2.10 to $2.40 in the third quarter. Analysts expected third-quarter per-share earnings of $2.18.

Delta’s executives hold a call with investors at 10 a.m. ET.

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