Delta Stock Soars on Carrier’s Strong Q2 Results, Reinstated Full-Year Outlook

Shares of Delta Air Lines (DAL) surged more than 10% in premarket trading Thursday after the carrier reported better second-quarter results than analysts had expected and reinstated its full-year outlook.

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 shares were up 11% shortly after the report was released. They entered the day down more than 16% since the start of this year.

Analysts said ahead of the report that they expected second-quarter results from Delta and other airlines to be stable and in line with estimates, while third-quarter forecasts could underwhelm as airlines continue to cut flight capacity to meet lowered demand levels.

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.