Written by Sinad Karahimetovic
Shares of Delta Air Lines (NYSE:) rose more than 4% after the company reported third-quarter results and provided guidance for the fourth.
Delta provided an adjusted $1.51 on adjusted revenue of $12.84 billion. That’s below the consensus of $1.55 on revenue of $12.91 billion. Passenger load factor was 87%, better than expected 86.2%. Revenue passenger mile (RPM) also exceeded expectations.
Delta had a strong quarter in September with record quarterly revenue and double-digit operating margin. “The travel revival continues as consumer spending shifts to experiences and demand improves in businesses and internationals,” said Ed Bastian, CEO of Delta.
The company sees Q4 EPS between $1.00 and $1.25, much better than the consensus of $0.98. Revenues are expected to increase 5-9% compared to the fourth quarter of 2019.
Vital Knowledge analysts commented that DAL’s better-than-fear earnings helped the broader market sentiment in Thursday’s pre-open trading.