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
