Delta Air Lines will report third quarter results on Friday morning, with investors expecting the carrier's premium business to continue to blunt rising fuel costs and capacity cuts. Delta is expected to report Q3 adjusted revenue of $17.6 billion, up 15.7% from a year ago, and adjusted earnings per share of $1.82 on adjusted net income of $1.23 billion, according to Bloomberg data. Last quarter Delta reinstated its full-year outlook for adjusted EPS of $6.50 to $7.50 and free cash flow of $3 billion to $4 billion, despite absorbing the highest quarterly fuel expense in its history; adjusted fuel expense came in at $4.4 billion in Q2, up 77% from a year ago, and CFO Erik Snell said the full-year fuel bill will be $4 billion higher than a year ago. Delta's premium business grew 17% year over year last quarter, with loyalty and related revenue up 19%, American Express remuneration of $2.4 billion, up 16%, and premium corporate sales up 25%. A war of words between CEO Ed Bastian and SpaceX CEO Elon Musk over Delta's lack of Starlink use is adding a distraction, after Bastian reportedly said at a company event, "We do not want to be with Elon Musk. Trust me," prompting Musk to write that Bastian "will lose his job over this" and that "Delta will lose a lot of customers."
Delta Air Lines IncDelta's premium business grew 17% and premium corporate sales rose 25%, expected to offset record fuel costs.
American Airlines Group
United Airlines Holdings Inc
American Express CompanyDelta's American Express remuneration rose 16% to $2.4 billion, reflecting growing co-brand card spending.
