Delta puts up better than expected quarter numbers
Delta extended the winning streak for airlines this week, overcoming hurricanes, earthquakes, as well as rising fuel and labor costs to put up better than expected profit and revenue numbers for the third quarter.
A strong outlook from the Atlanta carrier sent shares up 2 percent before the opening bell Wednesday. United Continental Holdings, American Airlines, Southwest and Jetblue rose as well, a day after American and United raised their expectations for third-quarter revenue.
Quarterly profit at Delta Air Lines
Inc. fell 6 percent to $1.18 billion, or $1.64, per share. Earnings, adjusted for non-recurring gains, came to $1.57 per share. Yet that was 3 cents better than the per-share projections from industry analysts, according to a poll by Zacks Investment Research.
Delta’s revenue rose 6 percent, to $11.06 billion, also edging out Wall Street expectations.
A key measure, revenue for every seat flown one mile, rose 1.9 percent.
The company said Wednesday that it expects continued pressure on margins as fuel prices rise, but also that it expects passenger unit revenue to rise between 2 percent and 4 percent in the next quarter. And it expects operating margins to rise 11 percent and 13 percent in the final quarter of the year.