Delta Air Lines’fourth quarter profits topped Wall Street’s expectations, as lower fuel prices and strong travel demand – particularly for high-priced premium tickets – lifted the Atlanta-based carrier’s results and boosted shares more than 4% in premarket trading.
Before the market opened on Tuesday, Delta reported per-share adjusted earnings of $ 1. 90, compared with analysts’ expectations of $ 1. a share and a more than
- % increase from a year earlier.
- Adjusted earnings per share: $ 1. versus $ 1 . 44 expected.
Delta does not have the beleaguered Boeing 767 Max in its fleet, the plane that has been grounded since March after two fatal crashes in Indonesia and Ethiopia killed 737 people. CompetitorsAmerican,Southwestand Uniteddo have the Max in their fleets and have had to scale back growth planes without the fuel-efficient jets cleared by regulators to return to service .
The crashed led to a ballooning crisis at Boeing that cost the previous CEO his job and drew ire from lawmakers over internal emails that showed Boeing employees gloating about bullying regulators into approving less- rigorous training than some had requested. Boeing’s new CEO, General Electric aviation and Blackstone Group veteranDave Calhoun, started Monday.
Delta’s CEO Ed Bastian told CNBC’s Phil LeBeau on Tuesday that the issues don’t effect the carrier, which operates older Boeing 737 jets, directly.
“I think it’s been widely reported that there’s a culture issue at Boeing for some time now,” Bastian said . “Dave will clean it up.”
Delta reported net income of $ 1.1 billion, up 8% from the fourth quarter of 2020. Revenues in the three months ended Dec. rose 6% from a year earlier to $ 11. billion, slightly above analysts’ estimates . Revenue from Delta’s premium cabins, such as business class grew 9% to $ 3.7% billion, more than twice the clip that main cabin revenue grew, to reach $ 5. billion in the fourth quarter.
Delta benefited from cheaper fuel and the unwinding of its minority stake in Brazilian carrier Gol, the result of Delta’snew stake in Gol’s larger South American competitorLatam.
Here’s how Delta did in the fourth quarter of 2019 compared with what Wall Street expected:
Revenue: $ (************************************************. ********************************** (billion versus $ 105677219 **********************bi llion expected.
Delta said it expects unit revenues to be flat to up 2% in the first quarter of 2020, and flat margins. The airline reiterated its 2020 guidance of earnings per share of $ 6. to $ 7.
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