Delta Air Lines (DAL) -) shares edged higher in pre-market trading ahead of the carrier's third quarter earnings prior to the opening bell on Thursday.
Analysts expect Delta to post an adjusted bottom line of $1.94 per share, a 28% increase from last year's levels, with revenues rising around 13% to $14.54 billion a the carrier continues to profit from the ongoing surge in post-pandemic travel.
Delta itself forecast third quarter revenue growth of between 11% and 14% with earnings in the range of $2.20 to $2.50 per share.
For the full year, the carrier said it sees earnings in the region of $6 to $7 per share, a $1 improvement from its prior forecast, while reiterating its target of $3 billion in free cash flow.
Investors will also focus on the group's overall cost base, which is expected to face pressure from the recent surge in oil that has lifted jet fuel prices. Delta's adjusted fuel expense was pegged at $2.5 billion over the second quarter, with prices estimated at around $2.52 per gallon.
That price is expected to surge higher over the three months ending in September, however, and possibly beyond, owing to the elevated levels of global crude tied to the Israel-Hamas conflict in Gaza and production cuts put in place by Saudi Arabia and Russia.
Management is also likely to address the impact of a recent decision by Pratt & Whitney-owned RTX (RTX) -) to remove as many as 700 engines from Airbus planes, some of them operated by Delta, owing to a powder metal defect that was identified last month.
Delta Air Lines shares were marked 0.36% higher in pre-market trading to indicate an opening bell price of $35.83 each.
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