Delta Air Lines reported its second-quarter earnings, with higher fares expected to remain in place.
An increase in fuel prices earlier in the year led the United States-based airline to bump up the cost of its fares in response, but despite fuel prices dropping again, the fares are not, according to CEO Ed Bastian.
Despite these difficulties, the quarterly results were positive overall.
Earnings per share (EPS) came in at $1.56 adjusted compared to the $1.48 estimates from Wall Street.
Full-year guidance for Delta was also affirmed, for adjusted EPS of $6.50 to $7.50 and free cash flow of US$3-$4 billion
Revenue also came out ahead of expectations, at US$17.67 billion, against estimates of $17.53 billion.
"It is clear that Delta’s brand and industry position are stronger than ever," said Bastian, in a press release.
"Delta is executing from a position of strength, and we expect momentum to carry into the second half with double-digit margins and a return to earnings growth…positioning us to continue our momentum into 2027.”
On Friday, Delta Air Lines (NYSE: DAL) stock closed 1.8% lower at US$87.39. The company's market cap stands at $57.41 billion.
