Delta Air Lines beat June-quarter estimates and maintained its full-year forecast despite a 77% surge in adjusted fuel expense to $4.4 billion, the largest quarterly fuel bill in its history. Adjusted operating revenue rose 14% to $17.7 billion on just 1% capacity growth, driven by a 17% increase in premium ticket revenue and a 19% jump in loyalty and related revenue, while American Express remuneration climbed 16% to $2.4 billion. Premium products and diversified revenue streams accounted for 61% of adjusted operating revenue, up 2 percentage points from a year earlier. The company reaffirmed its full-year adjusted earnings guidance of $6.50 to $7.50 per share and raised its dividend by 15%, signaling confidence in its cash generation. Delta expects September-quarter revenue to rise in the mid-teens with an operating margin of 11% to 13%.
Delta Air Lines IncDelta beat June-quarter estimates, reaffirmed full-year guidance, and raised dividend by 15%.