Delta Air Lines (DAL) has reported financial result for this year’s first quarter that topped Wall Street forecasts.
The Atlanta-based carrier announced earnings per share (EPS) of $0.64 U.S., which was ahead of the $0.57 U.S. consensus expectation of analysts.
Revenue in the period totaled $14.2 billion U.S., which beat the $14 billion U.S. forecast on Wall Street. Sales were up 9% from a year earlier.
Despite the top and bottom-line beats, Delta warned of the impact from higher jet fuel prices due to the war in Iran and reduced its growth plans as a result.
Looking ahead, Delta forecast per-share earnings of $1 U.S. to $1.50 U.S. for the current second quarter, compared with the $1.41 U.S. a share that analysts had expected.
Management at Delta said that capacity will likely be flat on the year as the airline and its travelers contend with higher jet fuel prices that result from increased crude oil.
Delta said that its fuel bill will be $2 billion U.S. higher this quarter because of the recent spike in oil prices.
Prior to delivering its latest financial results, Delta increased its checked baggage fee as it tries to offset soaring fuel costs.
Additionally, Delta owns a refinery where it turns crude oil into jet fuel, giving it an advantage over other U.S. airlines.
The carrier expects to post $1 billion U.S. in pre-tax profit in the second quarter and receive a $300 million U.S. benefit from its refinery.
Delta declined to provide a full year forecast due to ongoing uncertainty caused by the war in Iran and rising fuel costs.
DAL stock has risen 83% over the last 12 months to trade at $65.62 U.S. per share.
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