After travelers took to the skies in record numbers, defying some predictions of a slowdown in spending, Delta Air Lines reported an unparalleled quarterly profit and revenue on Thursday and increased its estimates for the year.
Even for an airline that has constantly exceeded expectations, the increase in revenue of almost 13% to $15.58 billion was unexpected.
Before the opening bell, shares increased by about 5%, heading toward a new 52-week high and driving major carriers higher with it.
In a written statement, Glen Hauenstein, president of Delta, stated that “robust demand is continuing into the September quarter, where we expect total revenue to be similar to the June quarter, up 11 percent to 14 percent compared to the September quarter 2022 on capacity that is 16 percent higher.
Delta made $1.83 billion, or $2.84 per share, in the second quarter. According to a study by Zacks Investment Research, earnings per share that were adjusted for one-time expenses or advantages came in at $2.68, significantly exceeding the $2.42 that Wall Street was expecting.
From earlier estimates of $5 to $6, the Atlanta carrier increased its per-share earnings predictions for the year to $6 to $7.
Early trading saw the entire industry rise as a result of Delta’s profitable quarter.
Before the opening bell, shares of American, United, and Southwest all increased by about 3%.
Delta anticipates its earnings per share for the current quarter, which ends in September, to be in the $2.20 to $2.50 range.