Delta Air Lines (DAL) was the second-best performer in the S&P 500 Thursday, rising after the carrier reported better second-quarter results than analysts had expected and reinstated its full-year outlook.
The shares finished the day up 12%. Other airlines also rose: United Airlines (UAL) added more than 14%, marking the best performance in the benchmark index, while American Airlines (AAL) wwas up nearly 13%. The JETS ETF, which includes airline shares, added more than 7%. (Read Investopedia’s full coverage of today’s trading here.)
Delta posted adjusted earnings per share of $2.10 on revenue that was roughly flat year-over-year at $16.65 billion. Analysts polled by Visible Alpha had projected $2.08 and $16.41 billion, respectively. Last quarter, Delta said it expected revenue to be down 2% to up 2%, with adjusted EPS within a range of $1.70 to $2.30.
For the third quarter, the airline sees revenue between flat and up 4%, with adjusted EPS between $1.25 and $1.75. Analysts expect revenue roughly flat at $15.69 billion, with adjusted EPS of $1.36.
Delta also reintroduced its full-year projections, saying it expects adjusted EPS of $5.25 to $6.25, with the midpoint well above analysts’ consensus of $5.31. Last quarter, it said it would provide an update to its outlook once the “current uncertainty” passed.
“As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow,” Delta CEO Ed Bastian said, adding that restoring its full-year guidance reflects “our confidence in the business.”
Delta has found success with elevating its “premium” offerings, recently announcing a rebrand of its ticket tiers, with some experts saying the changes seemed designed to make it easier for consumers to pick a more expensive, “premium” version of any ticket.
Executives expect the industry to cut its main-cabin domestic capacity by about 1% by September, amid weak demand for those tickets. Read more coverage of that topic here.
This article has been updated since it was first published to add closing share-movement information and further context.