Delta profits top expectations despite rocketing fuel costs

Delta Airlines turned in a set of third-quarter profits that topped expectations on the Street, with revenues boosted by a strong demand for travel and despite the US carrier's fuel bill surging during the all-important summer travel season.

Delta Airlines Inc.

$62.56

11:04 24/12/24

1.69%

$1.04

The second-biggest airline in the US told investors on Thursday that its net income rose 13% over the three months ending on 30 September to reach $1.31bn, while revenues picked up 8% to $11.95bn.

Delta saw earnings-per-share come in at $1.80 each for the quarter, beating estimates of $1.74 each.

However, the carrier's fuel costs soared 35% on an adjusted basis year-on-year, including a $12m benefit from its own refinery.

Looking forward, Delta said it expects fourth-quarter earnings of $1.10 to $1.30 per-share, broadly in line with Wall Street expectations, and an annual profit of around $5bn, despite being hit with a $2bn hike to its fuel costs, thanks to strong demand and higher fares.

As of 1445 BST, Delta shares had gained 2.66% to $51.03 each.