Delta Air Lines’ (Delta) share value increased as much as 4.5% with the announcement that fourth-quarter earnings had exceeded analysts’ highest profit estimate, according to Bloomberg data.
The carrier also posted a 2.4% uptick for revenue per available seat mile and beat all expectations for quarterly revenue. According to Delta CEO Ed Bastian: “2019 was a truly outstanding year on all fronts – the best in Delta’s history operationally, financially and for our customers. As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results, including earnings per share of $6.75 to $7.75.”
According to Markets Insider, Delta’s revenue and profit margin improved across all its domestic hubs and domestic revenue grew 7.7%, which was positive news after the carrier had invested heavily in several domestic travel hubs through new flightpaths and upgraded terminals.
Part of Delta’s recent success comes off the back of a lack of exposure to problems created by the grounding of the Boeing 737 MAX which has affected many of its competitors; it has no 737 MAX jets in its fleet of 907 commercial aircraft.Email Post to a Friend