Delta's Strong Outlook Boosts US Airline Stocks

US airline stocks surged after Delta Air Lines issued quarterly earnings that beat estimates and reinstated its forecast, boosting hope for the sector. American, United, Southwest, and Alaska Airlines all saw significant stock increases. Delta reported stable bookings, increased premium ticket revenue, and loyalty program revenue.

Delta posted adjusted revenue of $15.5 billion and EPS of $2.10, slightly exceeding analyst expectations. Operating income was $2 billion with a 13.2% margin. United, American, Southwest, and Alaska are set to report earnings soon, with analysts eager to see if they can replicate Delta’s success.

Airlines are benefiting from lower oil prices, reducing a major expense. Delta’s fuel expenses were down 11% year over year. Deutsche Bank analysts predict United and American, along with niche carriers like Sun Country and SkyWest, are likely to exceed current Street forecasts.

Investors are optimistic about the airline industry’s recovery, with Delta leading the way. The upcoming earnings reports from major carriers will provide insight into the sector’s performance moving forward. Analysts are closely watching for signs of sustained growth and financial stability in the industry.

Read more at Yahoo Finance: United, American, Southwest all surge after Delta’s outlook lifts fortunes for US airlines