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The No. 2 U.S. carrier by passenger traffic said its quarterly
operating revenue rose 5.5 percent to $11.1 billion, in spite of
a $140 million reduction from the storm.
Despite the storm-related impact, Delta beat analyst
expectations. Its adjusted earnings per share were $1.57 versus
the consensus forecast of $1.53 per share, according to Thomson
Reuters I/B/E/S.
Delta's shares rallied in pre-market trading on the
better-than-expected quarterly results.
Investors had been worried that the brutal hurricane season,
which included three back-to-back storms and resulted in
thousands of canceled flights, would have weighed more heavily
on the carrier's profitability.
Delta's quarterly passenger unit revenue rose 1.9 percent on 1.6
percent higher capacity. Its passenger revenue increased $328
million, including $160 million from fare segmentation
initiatives.
Excluding the impact from the storms, the metric rose within the
company's original guidance.
"Having just completed the busiest summer travel season in our
history, we have good momentum, a determined team and a solid
pipeline of initiatives to grow earnings and margins," Delta
Chief Executive Officer Ed Bastian said in a statement.
The carrier forecast it would increase its fourth-quarter
year-over-year passenger unit revenue by between 2 percent and 4
percent and have an operating margin of between 11 percent and
13 percent.
(Reporting by Alana Wise; Editing by W Simon and Bill Trott)
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