Overview
- Delta reported second-quarter non-GAAP revenue of about $17.7 billion and adjusted earnings per share of $1.56, topping Street forecasts for the period.
- The airline said it paid the largest quarterly fuel bill in its history and that fare increases and mix helped recover roughly 60% of the extra fuel cost in Q2.
- Delta reaffirmed its full-year adjusted EPS guidance of $6.50 to $7.50 and issued third-quarter guidance of $2.00 to $2.50 per share, which was above analyst expectations.
- Management raised the quarterly dividend by 15% and reduced adjusted net debt by about $709 million, citing strong cash flow and diversified revenue streams including premium fares, loyalty payments and refinery sales.
- Shares fell about 4% after the release on Friday, July 10, as investors weighed whether pricing power and capacity restraint will hold after the summer and translate into durable gains for airline profits.