Delta Q1 Earnings Beat Estimates

reported better-than-expected earnings for the first quarter on Wednesday. The Atlanta, Georgia-based company posted a quarterly profit of $746 million, or $0.90 per share, versus a year-ago profit of $213 million, or $0.25 per share. Excluding special items, the company earned $0.45 per share. Its sales climbed to $9.39 billion from $8.92 billion. However, analysts were expecting earnings of $0.44 per share on revenue of $9.4 billion. During the quarter, average fuel price was $2.29. Capacity rose 5 percent, while traffic gained 3.6 percent. Passenger revenue climbed 3 percent, while unit revenue slipped 1.7 percent. Cargo revenue came in unchanged versus the year-ago period, while other revenue gained 22 percent. Load factor declined to 87.1 percent, versus 82.7 percent. Cash from operations was $1.1 billion in the quarter, while free cash flow was $511 million. The average estimate among 47 Estimize users was for earnings of $0.52 per share and revenue of $9.45 billion. "Delta's business is performing well, producing the best March quarter, both operationally and financially, in Delta's history," said Richard Anderson, Delta's chief executive officer. "While the strong dollar is creating headwinds with international revenues, it also contributes to the lower fuel prices which will offset those headwinds with over $2 billion in fuel savings this year." For the current quarter, Delta projects an operating margin of 16 percent to 18 percent and system capacity to surge 3 percent. The company announced its plans to lower its international capacity by 3 percent y/y for the winter schedule. Delta shares rose 1.09 percent to $43.55 in pre-market trading.