Delta Benefits From Lower Fuel Costs, Profits Soar on Earnings

Lower fuel costs gave Delta's (DAL) earnings a boost as the airline reported stronger than expected profits on Wednesday. Unit revenue, which measures passenger revenue per seat mile, dropped further than anticipated on the back of weaker domestic demand and foreign exchange pressures. Delta said it expects unit revenue to decrease further in the third quarter. The airline reported earnings of $1.27 per share, smashing Wall Street estimates of $1.21 per share. Revenue also beat, coming in at $10.71 billion. The U.S. Department of Justice is investigating claims that U.S airlines have illegally worked together to keep prices high, despite falling demand. Delta shares were up on the earnings news as the company expects 30% fuel savings for the current quarter.