Delta Air Lines Tops Second-Quarter Views, Issues Robust Outlook

Delta Air Lines (DAL) reported higher-than-expected second-quarter results on Friday amid robust demand, while the air carrier provided a strong outlook for the ongoing three-month period. The company posted adjusted earnings of $1.56 a share for the June quarter, down from $2.12 the year before, but ahead of the FactSet-polled consensus of $1.49. Adjusted operating revenue climbed 14% to $17.67 billion on roughly 1% capacity growth, topping the Street's view for $17.55 billion. "We delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history, reflecting broad demand strength, growing brand preference and momentum across our diversified revenue base," Chief Executive Ed Bastian said in a statement. Fuel price surged 75% to $3.93 per gallon on an adjusted basis, pushing fuel expenses 77% higher annually to $4.41 billion. Crude oil prices soared in the aftermath of the Iran war, but have retreated as the US and Iran agreed to a memorandum of understanding in June. Adjusted total revenue per available seat mile climbed 12% in the second quarter, with gains across all regions. Passenger revenue rose 13% to $15.61 billion, while.