Delta Air Lines, Inc. Earnings In Line, The Boeing Company Beats Estimates

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Delta Air Lines, Inc. (NYSE:DAL) and The Boeing Company (NYSE:BA) both released the results from their most recently completed quarter this morning. Delta reported adjusted earnings per share of $1.04 on $10.62 billion in revenue. Analysts had been expecting earnings of $1.04 per share and revenue of $10.65 billion. In the same quarter a year ago, the airline reported adjusted earnings of 80 cents per share on $9.71 billion in revenue. GAAP earnings were 94 cents per share.

Boeing reported adjusted earnings of $2.42 per share, a 45% increase, on $22.05 billion in revenue. Analysts had been expecting earnings of $2 per share on $22.3 billion in revenue. In the same quarter a year ago, Boeing posted revenue of $21.82 billion. GAAP earnings per share were $2.24.

Breaking down Delta Air Lines’ earnings

Delta Airlines saw a 9% increase in operating revenue, which rose by $914 million in the June quarter. Traffic increased by 5%, while capacity rose by 3.2%. The airline saw a 9% year over year increase in passenger revenue and a 5.7% increase in passenger unit revenue with a 3.8% yield improvement. Delta reported a $45 million year over year increase in revenues from seat-related products and other merchandise.

The company said cargo revenue fell by $2 million or 1% due to lower freight yields, although higher volumes partially offset those lower yields. Delta reported a 15% or $144 million increase in other revenues due to higher revenues from SkyMiles and its joint venture.

As of the middle of this month, Delta Airlines has used some of its cash generation to bring its adjusted net debt under $8 billion and return $550 million to shareholders through a combination of share buybacks and dividends.

For the September quarter, Delta is projecting an operating margin of between 15% and 17% and fuel prices of between $2.88 and $2.93 per gallon. The company expects system capacity to rise by 2% to 3%.

Breaking down Boeing’s earnings

Boeing said higher commercial deliveries drove its higher revenue. The airplane and missile maker said it still has a $440 billion backlog with more than 5,200 orders for commercial airplanes.

The company bought back $11.4 million shares for about $1.5 billion during the quarter. Boeing increased its core earnings per share guidance by 75 cents to between $7.90 and $8.10 per share.

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