The stock of Delta Air Lines (NYSE:DAL) showed volatility on Thursday morning in response to the company’s earnings call update. DAL Executives stated that capacity limitations are anticipated to persist for a significant duration, following the company’s Q2 earnings report that surpassed expectations.
During the quarter, the Atlanta-based airline achieved a record-breaking operating revenue of $14.6 billion, marking a 19% increase compared to the previous year. The total unit revenue per available seat mile saw a 1% rise, primarily driven by enhanced load factors and yields resulting from a 17% growth in capacity. Delta’s load factor experienced a one-percentage-point increase, reaching 88%.
Providing robust guidance, the company expects the third-quarter earnings per share (EPS) to fall within the range of $2.20 to $2.50, surpassing the consensus estimate of $2.05. Furthermore, Delta (NYSE:DAL) anticipates the EPS for FY2023 to range from $6 to $7, outperforming the consensus estimate of $6.19.
Delta (NYSE:DAL) specifically highlighted the robust U.S. consumer demand that propelled its transatlantic business, with southern European destinations yielding strong results. Corporate revenue also witnessed year-over-year growth, as indicated by recent corporate surveys, which revealed that 93% of companies expect either an increase or stability in their travel activities during the September quarter.
Analysts had previously predicted substantial gains for the major U.S. airlines due to booming international demand and limited capacity. American Airlines Group (NASDAQ:AAL) and United Airlines Holdings (NASDAQ:UAL) are set to report their earnings next week, further shedding light on the industry’s performance.
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Author Faith Yakubu 
