Delta Air Lines reported strong June-quarter results and reaffirmed its full-year guidance. Premium demand remains strong while main cabin is soft, prompting capacity reallocation. Shares trade at 10-11 times expected earnings with room for growth. Revenue hit $16.6 billion in the quarter, with an operating margin of 13% and earnings per share of $2.10. Guidance for the third quarter includes 2-4% revenue growth and earnings per share of $1.25 to $1.75. Premium demand and loyalty revenue are offsetting main cabin softness, signaling a balanced outlook. Delta’s valuation is reasonable at 10-11 times expected earnings, with a 25% increase in the dividend earlier this year. While risks exist, Delta’s focus on premium demand, loyalty economics, and cost management make it a credible buy.

Read more at Yahoo Finance: Is Delta Air Lines Stock a Buy After a Strong Earnings Report?