Delta earnings up more than forecast, but revenues slide
DALLAS - Delta Air Lines's (DAL) second-quarter profit beat expectations despite lower revenue amid the company's plan to limit its growth in a bid to push fares higher.
Lower fuel prices are helping airlines earn big profits. Delta said Thursday that net income for the April-to-June quarter was $1.55 billion, up 4 percent from a year ago.
Delta said the profit is $1.47 per share, excluding one-time items. Analysts surveyed by FactSet predicted $1.42.
However, revenue slipped 2 percent to $10.45 billion, below the analysts' forecast of $10.48 billion. In Thursday morning premarket trading, Delta shares were down slightly, 0.4 percent to $39.40.
The company says it will increase its passenger-carrying capacity 1 percent in the fourth quarter and scale back its schedule of flights between the U.S. and the U.K.