Delta Air Lines (DAL.US) fell short of second-quarter earnings as margins took a hit from higher fuel prices and higher operational costs. Nevertheless the company expects strong travel demand.in the upcoming months.
Delta's EPS was $ 1.44 per share in the second quarter, compared with $ 1.64 analysts expected. Adjusted net income was $ 921 million versus an estimated $ 973.6 million. A measure of efficiency, non-fuel costs for single passenger per mile increased 22% in the second quarter compared to pre-pandemic levels and will also increase by about 22% in the third quarter, Delta said. Total adjusted operating expenses, excluding Delta oil refineries, rose 21% to $ 10.9 billion. Revenues totaled $ 12.31 billion, roughly in line with analysts' expectations of $ 12.33 billion.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThird-quarter revenues will increase by 1% to 5% compared to 2019 thanks to sustained consumer demand, which is expected to continue through autumn, Delta said. Company announced today that it will halt flight growth for the remainder of the year despite high interest from passengers in order to avoid mass cancellations that occured in recent weeks.
Delta is the first major US airline to report second-quarter results. United Airlines Holdings Inc. and American Airlines Group Inc. will publish them next week, and Southwest Airlines Co. on July 28.
Delta Air Lines (DAL.US) stock fell more than 3.0% in pre-market. D1 interval. Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
