Delta Air Lines stock climbs 4% after strong Q1 earnings
Delta Air Lines stock climbed as much as 4 per cent during the morning trade on Wednesday after the airline reported stronger than expected earnings for the first quarter.
The company also forecast a record second quarter earnings of $2.20 to $2.50 per share based on consistently strong travel appetite.
The US carrier reported profit of $37 million for the first quarter as compared to a loss of $363 million during the same period last year.
Its revenue rose 8 per cent to $13.8 billion.
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It stood by its forecast of full year earnings between $6 and $7 per share.
The airline predicted that second quarter revenue will be 5 per cent to 7 per cent higher than a year ago.
Excluding special items, it earned 45 cents per share, said Delta.
“Consumer demand is robust and premium trends remain strong,” Delta Air Lines president Glenn Hauenstein said.
The US carrier described consumer taste for travel as still unwavering, with business travel taking “another meaningful step forward this year” after the doldrums of the pandemic years, said Delta chief executive Ed Bastian.
The company has also expressed confidence in reducing the debt level.
In late-morning trade, shares of Delta Air Lines were down 0.2 per cent, as the US stock markets tumbled after the inflation data dampemed hopes for interest rate cut by the Federal Reserve in June.
Delta has boosted profit by focusing more on premium passengers who pay the highest fares, and raking in money from a credit-card partnership with American Express.
The airline reported that large corporate customers — who were slower than leisure travels to resume flying after the pandemic — are spending more on travel.
Delta’s fleet of more than 950 planes include majority of Boeing models, but in recent years it has bought primarily from Airbus, including a January order for 20 big Airbus A350s.
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Published: 10 Apr 2024, 10:38 PM IST