What Happened?
Shares of global airline Delta Air Lines (NYSE: DAL) jumped 13.3% in the morning session after the company reported better-than-expected second-quarter earnings, reinstated its full-year guidance, and announced a dividend increase. The airline posted record second-quarter revenue and adjusted earnings per share, surpassing Wall Street's expectations. The strong results were driven by resilient demand, particularly in premium and loyalty revenue streams, which grew 5% and 8% respectively.
Looking ahead, Delta expressed confidence in its business by restoring its full-year financial guidance. The company now expects full-year earnings per share between $5.25 and $6.25 and free cash flow of $3 billion to $4 billion. This optimistic forecast signals management's belief in sustained profitability and operational efficiency for the remainder of the year. Adding to the positive news for shareholders, Delta also announced a 25% increase in its quarterly dividend.
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What Is The Market Telling Us
Delta’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Delta and indicate this news significantly impacted the market’s perception of the business.
Delta is down 3.5% since the beginning of the year, and at $56.98 per share, it is trading 17.5% below its 52-week high of $69.06 from February 2025. Investors who bought $1,000 worth of Delta’s shares 5 years ago would now be looking at an investment worth $2,103.
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