DAL Stock Soars On Delta’s Q1 Beat, Airline Sees $300M Refinery Benefit Boosting Its Q2 Profit

Delta Air Lines Inc. (DAL) shares soared more than 12% in Wednesday’s pre-market trade after the company reported better-than-expected results in the first quarter (Q1), while stating that it expects low-teens revenue growth in the second quarter (Q2) amid flat capacity growth.

The company also stated that it expects to report $1 billion in pre-tax profit in Q2, which includes a $300 million benefit from its refinery. Delta operates the Monroe refinery outside Philadelphia.

Delta CEO Ed Bastian stated that while the recent fuel spike is impacting the company’s earnings, he is confident that it ultimately reinforces the airline’s leadership and accelerates its long-term earnings power.

“Our integrated fuel strategy is a unique differentiator, with the economics of our refinery partially offsetting higher crack spreads,” said Delta’s Chief Operating Officer, Dan Janki.

Delta reported earnings per share (EPS) of $0.64 on revenue of $15.9 billion, while Wall Street expected an EPS of $0.56, according to Fiscal.ai data.

Bastian Says Demand Remains Strong

Bastian highlighted that the demand has remained strong and that the airline is taking steps to protect its margins and cash flow.

“This includes meaningfully reducing capacity growth, with a downward bias until the fuel environment improves, and moving quickly to recapture higher fuel costs. Delta is best positioned to navigate this environment,” Bastian said.

Retail sentiment on Stocktwits around Delta Air Lines trended in the ‘neutral’ territory at the time of writing.

Get updates to this developing story directly on Stocktwits.

Also See: PSKY Stock Soars After Paramount Skydance Confirms Investments From Middle East Wealth Funds

For updates and corrections, email newsroom[at]stocktwits[dot]com.