Delta Airlines Inc. (DAL - Get Report) posted stronger-than-expected second quarter earnings Thursday, and lifted its full-year profit guidance, as non-ticket and premium product revenues boosted topline growth.
Delta said adjusted earnings for the three months ending in June came in at $2.35 per share, up 32% from the same period last year and 4 cents ahead of the Street consensus forecast. Group revenues, Delta said, rose by 6% to a record $12.54 billion thanks to surges in premium product and non-ticket revenues. Delta also saw average fuel costs for the quarter fall to $2.08 per gallon, a 4.14% decline from the same period last year.
Looking into the 2019 fiscal year, Delta said it will boost its earnings guidance to a range of $6.75 to $7.25 per share, with $2.10 to $2.30 per share expected for the third quarter, and a full-year pre-tax profit margin improvement of between 14.5% and 16.5%.
"Our record June quarter financial and operating results demonstrate that we are translating our powerful brand and competitive advantages into earnings growth, margin expansion and solid returns for our owners," said CEO Ed Bastian. "Our people are the best in the business and I'm proud to recognize their hard work and dedication this quarter with an additional $518 million toward next year's profit sharing."
Delta shares were marked 0.7% higher following the earnings release to change hands at $59.84, a move that would extend the stock's year-to-date gain to around 22% and value that Atlanta, Georgia-based carrier at just under $40 billion.
Delta said premium product ticket revenue grew 10% from the same period last year, while loyalty and third-party maintenance revenues notched a double-digit advance. Overall domestic revenues grew 8.8%, Delta said, while capacity rose 5.1%.
"With record passenger loads, customer satisfaction and $1 billion in revenue growth for the June quarter, demand for Delta's customer-focused product and service has never been stronger. Our third quarter is off to a great start with a new highest revenue day on record on July 7th," said Delta president Glen Hauenstein. "We now expect revenue growth of six to seven percent for the year, a $3 billion increase over 2018, as we benefit from our multi-year pipeline of fleet, product, and loyalty initiatives."