Delta Air Lines stock flew higher Thursday after the carrier cleared estimates for Q2 results and restored its full-year outlook. Rivals United Airlines and American Airlines trailed Delta's rally.
Delta Air Lines on Thursday reported earnings of $2.10 per share adjusted to beat forecasts for $2.06 per share.
Revenue increased less than 1% to $15.5 billion, narrowly topping views for $15.46 billion.
Glen Hauenstein, Delta's President, in the release noted that "demand trends stabilized at levels that are flat compared to last year," and the company continues to see "resilience" in its different revenue streams.
Overall international revenue rose 2%, driven by an 11% increase in revenue from the Pacific region. Domestic revenue eased by 1%.
Revenue passenger miles climbed 2%, with available seat miles growing 4%. However, total revenue per available seat mile declined 4%.
Delta restored its full-year guidance, which it had paused after its first-quarter report. The carrier now expects earnings to range from $5.25 to $6.25 per share with free cash flow between $3 billion and $4 billion.
The midpoint of the earnings outlook is ahead of FactSet views for $5.38 per share. The free cash flow guidance was ahead of estimates for $2.76 billion.
Delta had previously, on June 19, announced a 25% increase to its quarterly dividend starting in the September-ending quarter.
Delta Air Lines Stock
DAL stock spiked about 12% Thursday.
Shares pushed well above their 200-day moving average on the move, clearing what could be considered a short consolidation within a much deeper base.
Shares have pared their decline on the year to just over 6%.
American Airlines stock jumped 12.7% Thursday, rising toward its own 200-day line. AAL shares tumbled about 26% this year with the carrier's earnings results due July 24.
United Airlines advanced more than 14% Thursday, also rebounding above its 200-day moving average. UAL stock is still down 5.6% this year. United is set to report earnings next Thursday.
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