2023-07-13 11:04:22 ET
Delta Air Lines ( NYSE: DAL ) shares fluctuated on Thursday morning after its earnings call update.
DAL executives said on the call that capacity constraints are expected to remain for an “extended period” after the company reported second-quarter earnings that beat estimates.
The Atlanta-based carrier generated record operating revenue of $14.6B during the quarter, up 19% from a year ago. Total unit revenue per available seat mile was up 1% on 17% higher capacity driven by improved load factors and yields. Delta's ( DAL ) load factor was up one percentage point to 88%.
The company issued strong guidance expecting Q3 EPS in the range of $2.20 to $2.50 vs. consensus of $2.05 and FY2023 EPS in the range of $6 to $7 vs. consensus of $6.19.
Delta ( DAL ) noted that the transatlantic business was driven by strong U.S. consumer demand, with southern European destinations leading results. Corporate revenue grew year-over-year with recent corporate survey results indicating that 93% of companies expect their travel to increase or stay the same sequentially in the September quarter.
Prior to the print, analysts said booming international demand and limited capacity mean the big three U.S. airlines will continue seeing strong gains. American Airlines Group ( AAL ) and United Airlines Holdings ( UAL ) report earnings next week.
More on airlines:
- Airline stocks fly high after strong results from Delta Air Lines
- Delta Air Lines Non-GAAP EPS of $2.68 beats by $0.29, revenue of $15.58B beats by $120M
- Airline fares fall 19% in June from a year ago
- Delta, United, American expected to see the good times roll on: Earnings preview
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Delta shares swing following earnings call update