Nothing can ground Delta. Earnings fly


It seems like nothing can stop the aviation industry from its jet fueled joy ride.

Delta (DAL) reported healthy earnings Wednesday that included a 9% jump in revenue from the year earlier, another sign that after years of consolidation and cost cutting the airline business is continuing to cruise to new highs.

Shares of Delta are already up over 35% this year, an impressive feat considering the headwinds of 2014, which included winter weather, economic uncertainty, and lots of geopolitical risk in Ukraine, Venezuela and the Middle East, which sent oil prices higher.

Related: ‘Smart’ luggage will text you when it gets lost

Despite all that, people were still flying. Passenger revenue for the airline was the strongest in the U.S., with a 15.7% increase from the same period in 2013. Profit from corporate revenue was especially robust, suggesting that companies are feeling confident enough in the economy to send their employees on the road.

Delta’s stock climbed by over 2% in pre-market trading Wednesday.

 

Another winner in the hunt for profit in the skies is Boeing (BA). The aerospace manufacturer also reported solid quarterly earnings, which it said were driven by a 5% bounce in its commercial airplane business as deliveries pick up.

The company is feeling pretty good about the future as well and raised its earnings outlook for the rest of the year.

Shares of Boeing edged higher in premarket trading as well.

This entry was posted in Money Markets and tagged . Bookmark the permalink.