Delta Air Lines’ second-quarter profit tops expectations

Earnings



Joe Raedle | Getty Images

A Delta Air Lines plane is seen as it comes in for a landing at the Fort Lauderdale-Hollywood International Airport.

Delta Air Lines reported second-quarter profit on Thursday that topped analysts’ expectations.

Delta posted adjusted earnings per share of $1.77, compared with Wall Street estimates of $1.72 a share.

Revenue the three months ended in June rose 10 percent from the year-ago period to $11.78 billion, compared with analyst expectations of $11.72 billion.

Airlines are grappling with a roughly 60 percent rise in fuel costs over the past year, generally carriers’ second-largest expense after labor. Delta shares are off 11 percent in 2018.

Delta’s second-quarter net income fell 14 percent from a year ago to $1.03 billion, as higher fuel costs ate into the airline’s bottom line. The airline’s fuel bill was up 40 percent in the second quarter from a year ago.

Looking ahead to the current quarter, which ends in September, Delta forecast per share between $1.65 and $1.85 and for the full year it expects to earn $5.35 and $5.70 a share, down from a forecast it made in January of $6.35 to $6.70 a share, due to high fuel costs.

Shares were up more than 1 percent in premarket trade.



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