Delta Air Lines, Inc. DAL delivered a jolt of optimism to Wall Street Thursday, as its stock surged 12% after the company reported better-than-expected second-quarter earnings and reinstated its full-year profit outlook.
The rally led airline stocks higher across the board with investor confidence returning to the sector.
The Details: Delta reported adjusted earnings of $2.10 per share, topping expectations of $2.05.
Passenger revenue surged 26% to $13.88 billion and operating revenue for the quarter was $16.65 billion, above the consensus estimate of $16.18 billion.
Read Next: UnitedHealth Hits Reset: New Head Of Medicaid Appointed As CEO Reshapes Team
CEO Ed Bastian told analysts on a conference call Thursday that Delta's premium and loyalty segments continue to show resilience and growth and helped to offset some lingering softness in the main cabin.
"Our core consumer is in good shape and continues to prioritize travel and affinity for Delta's brand has never been stronger," Bastian said.
"This is evidenced by the sustained strength of our premium products and our industry-leading co-brand card with consumer spend growth on the Delta American Express card up double digits in the first half of the year," the CEO added.
Bastian also said he expects the passage of Trump's tax and spending bill and progress on trade negotiations to restore some economic certainty and stability.
"We expect both consumer and corporate confidence to improve in the second half of the year, creating the environment for travel demand to accelerate," Bastian said on Delta's earnings call.
What Else: Other airline stocks moved higher in sympathy with Delta as investor confidence in the sector grew following the stronger-than-expected earnings report.
Shares of United Airlines Holdings Inc. UAL ended Thursday's session 14.3% higher and American Airlines Group Inc. (NASDAQ:A AL) stock closed 12.7% higher at $12.94, according to Benzinga Pro.
DAL Price Action: Delta Air Lines shares ended Thursday’s session up 12% at $56.79.
Read Next:
Image: Shutterstock
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
