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Delta Air Lines (NYSE:DAL) traded higher during the premarket session on Thursday after the airline company topped expectations with a $695M Q3 profit as higher fares and strong summer demand factored in.
Revenue was up 11% during the quarter. Operating income was $1.5B on an operating margin of 10.4%.
Also factoring in to the revenue tally, Delta received a quarterly record $1.4B from credit cards issued by American Express and expects to take in $5.5B from the cards this year. The impact of Hurricane Ian on September month revenue was $35M, driven by cancellations and related booking softness to affected areas. A similar impact is expected in the month of October.
Looking ahead, Delta CEO Ed Bastian said it is going to be a very strong holiday season for the airline.
“Consumers are still relatively healthy. They have deferred spending, but where they have deferred it is the acquisition of things.”
Delta said it has enough staffing in place to meet the holiday flight crush.
Delta forecasts Q4 EPS of $1.00 to $1.25 vs. the consensus mark of $0.80.
Shares of Delta Airlines (DAL) rose 4.31% in premarket trading on Thursday. American Airline Group (AAL) was up 2.31% and United Airline (UAL) gained 2.22%. JetBlue Airways (JBLU) showed a 1.55% increase and Southwest Airlines (LUV) tracked 1.21% higher.
