Key Points – Delta posted a strong Q2, with record June-quarter revenue of $17.7 billion, earnings of $1.56 per share, and a pre-tax profit of $1.4 billion, all above its original guidance despite much higher fuel costs. – The airline reaffirmed full-year outlook, keeping EPS…
idance at $6.50 to $7.50 and free cash flow at $3 billion to $4 billion, while signaling that higher fares and strong demand should help offset inflationary pressure. – Delta said broader revenue streams and operations are improving, including double-digit corporate sales growth, rising premium/loyalty revenue, strong on-time performance, and continued investment in tech, reliability, and its TechOps business. – Delta Air Lines Lives Up to Its Claims: Shares Can Keep Climbing Delta Air Lines (NYSE:DAL) reported record June-quarter revenue and better-than-expected profitability, with executives telling analysts that strong demand, fare momentum and diversified revenue streams are supporting the carrier’s full-year outlook despite a sharp increase in fuel costs. Chief Executive Officer Ed Bastian said Delta generated record revenue that rose 14% from a year earlier, increasing by more than $2 billion
The airline reported pre-tax profit of $1.4 billion, earnings of $1.56 per share and an operating margin of 9%, all above the guidance it provided at the start of the quarter. Return on invested capital was 11%. – Southwest MAX Incident Revives Headline Risk for Boeing and Airline Stocks Through the first half of the year, Delta generated $1.4 billion in free cash flow and announced a 15% increase to its dividend. Bastian said the airline has accrued nearly $500 million toward next year’s profit-sharing payout and announced a 4% employee pay increase in May.
Demand and Pricing Remain Central to Outlook Bastian described the U.S. economy as resilient, citing strong employment, rising household incomes and wealth accumulation. He said customers continue to prioritize experiences, supporting…