Delta puts up bet­ter than ex­pected quar­ter num­bers

Las Vegas Review-Journal - - BUSINESS -

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.

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