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Delta beats on earnings, shares jump 3%

Apr 14, 2016, 16:31 IST

AP

Delta Air Lines reported profits that topped estimates before the opening bell on Thursday.

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The company earned $1.32 in adjusted earnings per share (EPS), and revenues of $9.25 billion.

Analysts had estimated $1.30 in adjusted EPS, and quarterly revenues of $9.26 billion, according to Bloomberg.

Incoming Delta president Glen Hauenstein said the company's performance was boosted by initiatives including its partnership with American Express, even with a 40% drop in fuel prices and about $125 million in headwinds from the strong dollar.

Delta's spending on fuel fell by $1.45 billion year-over-year, due to the drop in fuel prices.

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When Delta reported fourth-quarter earnings in January, it missed profit estimates, and forecast that passenger unit revenue would continue to drop due to currency headwinds.

"We are forecasting a unit revenue decline of 2.5 - 4.5 percent for the June quarter," Hauenstein said in the earnings statement.

"While this is an improvement over our March quarter performance, we are focused on getting unit revenues back to a positive trajectory and we will make adjustments to our fall capacity levels if we are not making sufficient progress over the coming months."

Delta's operating revenues took a $5 million hit from the Brussels terror attacks. Overall, they fell 1.5%, or $137 million.

Passenger unit revenues fell 4.6%.

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Delta shares rose by as much as 3% in pre-market trading. They've gained about 11% over the past 12 months.

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