- Delta Air Lines raised its earnings outlook for the year after reporting record revenue in the second quarter.
- The company beat Wall Street expectations as it recorded $1.5 billion in profit, which translated to $2.35 in earnings per share during the quarter.
- The airline saw its premium-class ticket and loyalty and maintenance businesses strengthen during the quarter.
- Ed Bastian, the chief executive officer of Delta, told CNBC this quarter’s performance was helped by Delta not having any Boeing 737 Max’s in its fleet.
- Watch Delta trade live.
Delta considers itself lucky that it doesn’t have any Boeing 737 Max aircraft in its fleet.
Shares of Delta climbed more than 2% in early trading Thursday after the company beat Wall Street expectations for the second quarter and raised its revenue outlook for the remainder of the year.
The Atlanta-based airline reported net income of $1.5 billion, narrowly outperforming analyst expectations of $1.48 billion. Delta generated earnings-per-share of $2.35 in the second quarter, outpacing the consensus analyst estimate of $2.28.
Ed Bastian, the chief executive officer of Delta, told CNBC the airline’s performance was helped by the fact that it doesn’t fly Boeing’s 737 Max, which has been grounded by rivals such as United and Southwest.
“It’s taken longer than any of us expected to see it return to service,” he told CNBC on Thursday. “We don’t have a crystal ball on that.”
Profits jumped 30% from the same period last year thanks to a 10% increased in premium-class ticket revenue and a boost in its loyalty and third-party maintenance business. The airline also hit a new record for revenue of $12.5 billion in the quarter.
After it’s strong performance this quarter, the company also decided to raise its full-year revenue outlook from $6.75 per share to $7.25. Delta’s board of directors also raised the company’s dividend by 15%.
“With record passenger loads, customer satisfaction and $1 billion in revenue growth for the June quarter, demand for Delta’s customer-focused product and service has never been stronger,” said in a press release.
Shares of the airline were up 19% year-to-date through Wednesday.
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