Despite summer travel slump, Delta stock soars
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The airline’s upbeat outlook for the year has been dimmed by economic turbulence in the U.S. that made people hesitant to book flights.
Delta Air Lines said on Thursday its bookings have stabilized, prompting it to forecast a brighter profit outlook for coming quarters, even as pricing pressures continue to weigh on industry margins.
Delta's revenue from premium seats like business class rose 6% in the first half of the year to $10.6 billion, while main cabin economy ticket revenue dropped 4% to $11.7 billion. The carrier, the most profitable U.S. airline, has said for years that its share of sales from high-end seats and its lucrative loyalty program has been growing.
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Delta topped Wall Street expectations for the quarter and reinstated full-year guidance. The company is feeling much more upbeat about the quarters to come than it was three months ago, propelling the stock higher.
Delta second quarter results, the first from the airline industry, continued a trend of increased revenue from premium segments and diminished domestic revenue.
Delta says flight attendants quickly extinguished a battery from a passenger’s personal electronic device on a flight from Atlanta.
Shares of Delta Air Lines rocketed higher Thursday after the carrier reported better-than-expected profits and reinstated its full-year forecast based on a reassuring travel outlook.
After withdrawing its outlook in April, Delta is again forecasting a profit—though at a significantly lower level than originally projected.