Delta Stock Soars. Why Its Earnings Beat Is Sending Other Airline Shares Flying.

Core Insights - Delta Air Lines reported better-than-expected earnings, leading to a positive impact on the airline sector's stock prices [1][2] - The company raised its full-year earnings per share (EPS) guidance to $6, surpassing analyst expectations [3][6] - Strong performance in corporate travel and premium seat revenue contributed to Delta's success [3][4] Financial Performance - Delta's adjusted EPS for Q3 was $1.71, with adjusted revenue of $15.2 billion, exceeding Wall Street's expectations of $1.52 EPS and $15.1 billion in sales [2] - Corporate travel sales increased by 8%, while premium revenue grew by 9% in the quarter [3] Market Reaction - Following Delta's earnings report, shares of Delta and its peers saw significant increases, with Delta up 6.5%, United Airlines up 4.6%, and American Airlines up 4% [2][4] - The airline sector's stocks are positioned for recovery, with the JETS ETF rising 50% from its 52-week low in April [7] Historical Context - Delta faced challenges earlier in the year, initially projecting EPS of over $7.35 but later revising its guidance down due to external factors [5][6] - Despite a turbulent year, Delta's stock is now on track to turn positive for the year, reflecting a recovery trend in the airline industry [6][7]