Delta Air Lines adds 3% on upbeat profit forecast, reports ‘record’ advance summer bookings

By Senad Karaahmetovic

Shares of Delta Air Lines (NYSE:) are up 3% in pre-open Thursday after the carrier offered better-than-expected guidance for its second quarter.

Delta an EPS of $0.25 on revenue of $12.8 billion for the first quarter, which compares to the analyst consensus for EPS of $0.32 on revenue of $12.03B. Passenger revenue soared 51% year-over-year to $10.41B.

The company also reported a passenger load factor of 81%, representing a 600 basis points increase relative to a year-ago period. Similarly, Available seat miles and revenue passenger miles both increased YoY.

“Delta is building momentum, with the best people in the industry generating nearly $5 billion of operating profit over the last twelve months,” said Ed Bastian, Delta’s chief executive officer.

Delta said it expects to report Q2 EPS of $2.00-$2.25, easily ahead of the consensus at $1.61. The company reaffirmed its FY EPS forecast of $5-$6. DAL also expects Q2 revenue to grow 15-17% while operating margin is seen rising 14-16% on the back of the “record advance bookings for the summer.”

Goldman Sachs analysts weighed in positively on the report.

“After yesterday’s airline sell-off on revenue trend concerns (our airlines coverage -4% vs. S&P flat), we believe Delta’s better-than-expected revenue outlook and reiteration of its full-year guidance will be positive for DAL shares,” they said.

DAL shares are up 2.7% year-to-date (YTD).