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Delta Air Lines stock was surging on Thursday after the carrier topped Wall Street’s earnings expectations and restored its full-year guidance.The airline posted adjusted earnings per share of $2.10 on revenue of $15.
Analysts expect that airlines will have a tepid earnings season as tariff uncertainty and declining U.S. dollar weigh on the industry.
Delta Air Lines shares surged after beating Q2 expectations and reinstating its full-year profit forecast. Stabilized demand, strong premium sales, and a positive Q3 outlook boosted investor sentiment across the airline sector.
Delta Air Lines was one of the top-performing stocks in the S&P 500 Thursday after the carrier reported better second-quarter results than analysts had expected and reinstated its full-year outlook.
Delta Air Lines Inc. reinstated a profit outlook for the year and said travelers are coming back, prompting its stock to surge amid a fresh sense of confidence in the beaten-down US consumer.
Delta Air Lines, the world’s largest carrier by revenue, reported upbeat second quarter results and reinstated its guidance as growing economic clarity deflects headwinds resulting from a global trade war.
Delta’s encouraging report boosted the entire airline sector. United jumped 14.3%, American climbed 12.7%, JetBlue gained 7.8% and Southwest finished 8.1% higher.
Delta posted strong growth from sales of higher-priced seats like first-class and from its lucrative American Express partnership, which increased 10% in the second quarter from the same period last year to $2 billion. Airlines have become more reliant on travelers who are willing to spend more to fly rather than more price-sensitive consumers.
Delta Air Lines restored its financial guidance for the year, months after scrapping its initial outlook in response to the ongoing global trade war.