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

Earnings

SOPA Images | LightRocket | Getty Images

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.

Products You May Like

Articles You May Like

Delta offers employees buyouts, retirement as coronavirus hurts travel demand, while United readies similar plans
Former NFL star leaves $1,000 tip on $37 tab to help restaurant employees during the pandemic
Chinese Apple rival Xiaomi gets first-quarter sales boost as smartphone demand rebounds
Cramer says the stock market is too optimistic about an economic recovery — ‘it’s just not going to work like that’
A Pro-Business Provision In The CARES Act Every Business Owner Should Know

Leave a Reply

Your email address will not be published. Required fields are marked *