Delta Air Lines (NYSE:DAL) reported first-quarter results that exceeded analyst expectations, though its outlook for the current quarter came in below forecasts on profit despite solid revenue growth projections. Shares rose more than 10% intraday Wednesday.
The airline posted earnings of $0.64 per share, surpassing the consensus estimate of $0.61, while revenue reached $14.2 billion, ahead of expectations of $13.97 billion. Operating income totaled $652 million, representing an operating margin of 4.6%.
The stock had already been trending higher ahead of the release, supported by a broader rally in airline shares following a U.S.-Iran ceasefire announcement that drove oil prices lower.
Delta also announced plans to eliminate previously scheduled capacity growth for the second quarter, reducing planned supply by approximately 3.5 percentage points.
Looking ahead, the company projected second-quarter earnings per share of $1.00 to $1.50, below the Street estimate of $1.70, and guided for an operating margin between 6% and 8%. However, it expects total revenue to grow at a low-teens percentage rate year over year.
