Overview

• Delta posted adjusted earnings of $1.71 per share for the September quarter, topping the $1.53 consensus estimate, as pricing power improved.
• The airline guided to December-quarter adjusted profit of $1.60 to $1.90 per share, with a midpoint above Wall Street’s $1.66 estimate, and it expects positive unit revenue.
• Management said sales accelerated over the past six weeks across all geographies and reported a rebound in corporate bookings across sectors.
• Premium revenue rose 9% year over year to about 43% of passenger revenue while main cabin revenue fell 4%, and Delta plans to add premium seats and scale back main cabin capacity.
• Analysts say capacity reductions and Spirit’s shrinkage are helping curb discounting, and research from Deutsche Bank forecasts premium-focused carriers widening their lead as many rivals risk losses.