Core Viewpoint - Delta Air Lines reported a stable Q2 revenue of approximately $16.65 billion, with adjusted earnings per share of $2.10, exceeding analyst expectations, indicating a recovery in market demand post-trade tensions [1] Financial Performance - Q2 revenue was approximately $16.65 billion, unchanged from the previous year [1] - Adjusted earnings per share were $2.10, higher than the expected $2.07 [1] - Delta revised its annual earnings forecast to an adjusted EPS of $5.25 to $6.25, signaling confidence in the market [1] - The midpoint of the new EPS forecast (5.75) is above the analyst average expectation of $5.35 but lower than the previous forecast of over $7.35 [1] Business Segments - Delta's revenue growth was driven by high-margin businesses, including increased sales of premium tickets, growth in frequent flyer program credit card spending, partnerships with American Express, cargo operations, and internal maintenance services, which contributed 59% of total revenue [2] Industry Context - The airline industry faced challenges in H1 2023, including accidents and air traffic control disruptions, leading to a significant drop in domestic travel demand [3] - Despite the downturn, international premium travel and frequent flyer travel remained strong, while domestic economy demand stagnated [3] - Delta's CEO noted a gradual recovery in air travel demand as tax cuts and spending plans were approved, and tariff negotiations progressed [3] - The airline industry is expected to adjust capacity growth post-summer to improve ticket prices [4]