Delta Air Lines Inc. (DAL, Financial) reported its results for the third quarter before the opening bell on Oct. 11.
The Atlanta-based airline posted earnings per share of $1.57, which topped estimates of $1.53 but declined 8% year over year. Quarterly revenue of $11.06 billion beat expectations of $11.03 billion and increased 6% from the prior-year quarter.
Delta’s passenger revenue per available seat mile, a key income metric for the industry, grew 1.9%, which was in line with the company’s expectations.
Following the announcement, shares rose 1.7% in premarket trading.
The trend in the company’s revenue growth over the past decade is illustrated in the chart below.
Despite being forced to cancel flights due to Hurricanes Harvey and Irma, Delta reported higher revenue in its domestic, Latin American and trans-Atlantic operations. CEO Ed Bastian commented on the company’s performance in regard to these storms.
“While we faced a number of challenges this quarter, including multiple hurricanes and an earthquake in Mexico, I am proud of how Delta people responded and still delivered an outstanding performance this quarter,” Bastian said. “Having just completed the busiest summer travel season in our history, we have good momentum, a determined team and a solid pipeline of initiatives to grow earnings and margins.”
The company also highlighted how it helped in the hurricane relief efforts, which included operating humanitarian flights, shipping supplies and making monetary donations to the American Red Cross.
The company said it expects a 2% to 4% increase in passenger revenue per available seat mile in the fourth quarter but emphasized operating margins would likely be squeezed by higher fuel costs, which increased in July.
With 7.34% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company’s largest guru shareholder. During the second quarter, NWQ Managers (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Ray Dalio (Trades, Portfolio), John Hussman (Trades, Portfolio) and Stanley Druckenmiller (Trades, Portfolio) established holdings. A total of 24 gurus have positions in the stock.
Disclosure: I do not own any stocks mentioned.
