Why Delta Air Lines Stock Is Flying High Today
Delta Air Lines (NYSE: DAL) reported solid third-quarter results and remains optimistic about the travel environment ahead. The results led to at least one Wall Street upgrade, and shares of Delta are up as much as 5% as a result.
On Thursday, Delta kicked off airline earnings season with mostly good news. The company actually missed analyst earnings estimates, mostly due to Hurricane Ian, but reported better-than-expected revenue and said demand, including business and international demand, remains strong. As a result, Delta expects to be free-cash-flow positive in 2022.
The guidance was well received by investors, who have worried that inflation, and the Federal Reserve's effort to fight it, would lead to a slowdown in travel in the months to come. Airline tickets are a high-priced discretionary expense that is often deferred during a downturn. But Delta said that October metrics are pacing ahead of September and that November revenue is trending strong as well.
Source Fool.com
