Delta Air Lines‘ third-quarter profits topped Wall Street’s expectations, as strong travel demand boosted revenues while the carrier’s fuel bill surged during the busy summer travel season.
The second-largest U.S. airline on Thursday said its net income in the three months ended Sept. 30 rose 13 percent from a year earlier to $1.31 billion, on revenue of $11.95 billion, which increased 8 percent.
The carrier reported per-share adjusted earnings of $1.80, beating estimates of $1.74 a share, according to analysts polled by Refinitiv.
The airline’s fuel bill rose 35 percent on an adjusted basis from a year ago, including a $12 million benefit from its refinery.
Looking ahead to the fourth-quarter Delta said it expects per-share earnings of $1.10 to $1.30, roughly in line with analyst expectations. The carrier will post a profit of around $5 billion for the year, roughly in line with 2017, despite a $2 billion increase in fuel costs, thanks in part to strong demand and higher fares, CEO Ed Bastian told CNBC.
Delta shares were up more than 2 percent in premarket trading.
Delta executives will hold an investor call at 10 a.m. ET.
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