Delta Air Lines reports the best quarter and increases its full-year profit forecast.

Shares of the carrier rose after the publication of quarterly earnings and incomes above analytical estimates.

Since Delta does not operate the Boeing 737 Max, the airline benefits from competitors.

 

Delta reported an increase in adjusted earnings per share of 32% to $ 2.35, which is $ 0.10 better than the estimate of $ 2.25. 

Aevenue rose 8.7% to $ 12.5 billion above analysts’ forecast of $ 12.43.

Shares of the American airline Delta Air Lines (DAL), which grew by more than 20% since the beginning of the year, rose 1.16% on Thursday after the company published a good report on revenues and profits for the 2nd quarter and raised its forecast for annual profit .The airline also raised its forecast for annual earnings per share from the range of $ 6 — $ 7 to $ 6.75 — $ 7.25 of earnings per share.

Over the past two days, analysts at two investment companies raised target prices for Delta shares. Cowen up to $ 69, and Imperial Capital up to $ 63, reaffirming the ratings «superior» (worse than «buy», but better than «hold») and «neutral», respectively.

Detail of the Delta Air Lines 2Q report

Key metric for airlines — Delta revenue per mile (RASM) increased by about 3.5% per quarter due to high demand, especially for premium seats and corporate travel, reaching the upper limit of its original forecast range from 1 , 5% to 3.5%.

Delta’s revenue growth was particularly strong in the domestic market, as the airline took advantage of the decline in capacity at American Airlines and Southwest Airlines related to grounding the Boeing 737 MAX.

«We do not fly on Max, and it is obvious that in this quarter, the airline won,» said Del Bastian, executive director of Delta, in an interview with SBC on Thursday.

Domestic passenger revenues grew by 8.8%, while revenues from passenger traffic on international routes grew by just over 5%.

The latest Delta data shows that an increasing number of their passengers are willing to pay more for better seats. According to Bastian, passengers buy 65% and 70% of first-class seats. This is up from 13% for domestic routes in 2011.

Other US airlines will publish their quarterly results later. United Airlines will be the next airline to report the report on July 16th.

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