Delta Beats Q2 Earnings Estimates as CEO Says Higher Airfares Will Stay Sustainable

According to Delta Air Lines' Friday earnings report, the airline beat second-quarter adjusted earnings estimates with EPS of $1.56, above Wall Street's forecast of $1.48. Revenue came in at $17.67 billion, exceeding the $17.53 billion consensus estimate. CEO Ed Bastian told CNBC in an interview that higher airfares will likely remain sustainable despite falling oil prices, citing robust demand, more diverse seat options, and a more disciplined airline industry less likely to expand capacity as fuel costs moderate.

Delta reaffirmed its full-year earnings guidance of $6.50 to $7.50 per share and forecast third-quarter EPS between $2.00 and $2.50, compared with analyst estimates of $2.02. Bastian noted the airline is currently passing about 60% of higher fuel costs to consumers and expects to reach closer to 100% this quarter.