Delta Stays Strong With Solid Guidance Update
The U.S. airline industry has faced lots of turbulence in 2019, with the grounding of the Boeing 737 MAX, delivery delays for Airbus A321neos, and overcapacity in certain regions tripping up many of the top airlines. Throughout the year, Delta Air Lines (NYSE: DAL) has stood out for its consistently strong performance -- partly because it hasn't ordered the 737 MAX and has no scheduled A321neo deliveries until next year.
That streak continued last quarter. On Wednesday morning, Delta narrowed and reaffirmed its earnings guidance for the third quarter. This keeps the company on track to finish the year with strong earnings growth.
Three months ago, Delta Air Lines projected that revenue per available seat mile (RASM) would rise 1.5% to 3.5% in the third quarter, outpacing a 1% to 2% increase in adjusted nonfuel unit costs. The carrier also estimated that its average fuel price would fall to a range of $1.95 to $2.15 per gallon, compared to $2.22 per gallon a year earlier.
Source Fool.com
