Delta Air Lines posted a 26% drop in second-quarter net profit to $1.03 billion, weighed by a 77% surge in adjusted fuel expenses, even as adjusted revenue climbed to a record $17.67 billion. Adjusted earnings per share fell to $1.56 from $2.12 a year earlier, though the carrier beat analyst expectations.
Operating revenue rose 19% to $19.76 billion, driven by $6.92 billion in premium seating revenue. The airline reaffirmed its full-year adjusted EPS guidance of $6.50 to $7.50 and forecast third-quarter earnings between $2.00 and $2.50 per share.
Despite the profit decline, Delta shares have risen nearly 30% this year and all nine analysts tracked by Visible Alpha rate the stock a buy. Raymond James recently lifted its price target to $104 while downgrading to outperform, and UBS sees third-quarter EPS at $2.51, above consensus.