Delta Air Lines (DAL - Free Report) kick-started the second-quarter 2019 earnings season in the airline space on a solid note, delivering better-than-expected earnings and revenues. The company’s bottom line (excluding 14 cents from non-recurring items) of $2.35 per share outpaced the Zacks Consensus Estimate of $2.29 and increased 32.8% on a year-over-year basis. Higher revenues aided the quarterly results.
Operating revenues totaled $12,536 million, which surpassed the Zacks Consensus Estimate of $12,499 million. Moreover, it compared favorably with the year-ago number.
Moreover, the airline behemoth issued an encouraging projection. For the third quarter, Delta expects earnings (excluding special items) between $2.10 and $2.40 per share. The mid-point of the guided range ($2.25 per share) is above the Zacks Consensus Estimate of $2.16.
For 2019, Delta increased its earnings per share projection. Delta now expects full-year earnings per share between $6.75 to $7.25 (earlier view: $6-$7 per share) The mid-point of the guided range ($7 per share) is above the Zacks Consensus Estimate of $6.93.
On an adjusted basis, total revenue per available seat mile (TRASM) in the second quarter increased 3.8% year over year to 17.42 cents driven by strong demand for air travel. TRASM improvement was more than the guidance of 3.5% increase projected earlier in July 2019.
Moreover, the company’s board of directors approved a 15% hike in quarterly dividend payout to $0.4025 per share. The increase marks the sixth consecutive dividend hike by the company. The new dividend will be paid on Aug 15, 2019 to shareholders of record on July 25.