Delta Air Lines Q2 Earnings Call Highlights

Delta posted a strong Q2 , with record June-quarter revenue of $17.7 billion, earnings of $1.56 per share, and a pre-tax profit of $1.4 billion, all above its original guidance despite much higher fuel costs. The airline reaffirmed full-year outlook , keeping EPS guidance at $6.50 to $7.50 and free cash flow at $3 billion to $4 billion, while signaling that higher fares and strong demand should help offset inflationary pressure. Delta said broader revenue streams and operations are improving , including double-digit corporate sales growth, rising premium/loyalty revenue, strong on-time performance, and continued investment in tech, reliability, and its TechOps business. Delta Air Lines Lives Up to Its Claims: Shares Can Keep Climbing Delta Air Lines NYSE: DAL reported record June-quarter revenue and better-than-expected profitability, with executives telling analysts that strong demand, fare momentum and diversified revenue streams are supporting the carrier’s full-year outlook despite a sharp increase in fuel costs. Chief Executive Officer Ed Bastian said Delta generated record revenue that rose 14% from a year earlier, increasing by more than $2 billion. The airline reported pre-tax profit of $1.4 billion, earnings of $1.56 per share and an operating margin of 9%, all above the guidance it provided at the start of the quarter. Return on invested capital was 11%. Delta Air Lines Lives Up to Its Claims: Shares Can Keep Climbing Delta Air Lines NYSE: DAL reported record June-quarter revenue and better-than-expected profitability, with executives telling analysts that strong demand, fare momentum and diversified revenue streams are supporting the carrier’s full-year outlook despite a sharp increase in fuel costs. Chief Executive Officer Ed Bastian said Delta generated record revenue that rose 14% from a year earlier, increasing by more than $2 billion. The airline reported pre-tax profit of $1.4 billion, earnings of $1.56 per share and an operating margin of 9%, all above the guidance it provided at the start of the quarter. Return on invested capital was 11%. Through the first half of the year, Delta generated $1.4 billion in free cash flow and announced a 15% increase to its dividend. Bastian said the airline has accrued nearly $500 million toward next year’s profit-sharing payout and announced a 4% employee pay increase in May.