Delta Air Lines, Inc. (NYSE:DAL) stock fell 0.67% (As on July 14, 11:17:42 AM UTC-4, Source: Google Finance) after the company missed the analysts’ expectations for the second quarter of FY 22. : Domestic passenger revenue was 3 percent higher and international passenger revenue was 81 percent recovered compared to the June quarter 2019. Domestic corporate sales for the quarter were ~80 percent recovered versus 2019, up 25 points compared to the March quarter. International corporate sales for the quarter were ~65 percent recovered versus 2019, up 30 points compared to the March quarter, driven by outsized improvement in Transatlantic. Cargo revenue was $272 million, a 46 percent increase compared to the same period in 2019. MRO revenue in the June quarter was $178 million, restored to 85 percent of 2019 levels. Adjusted fuel price of $3.82 per gallon was up 37 percent sequentially. Liquidity is of $13.6 billion, including $2.8 billion in undrawn revolver capacity.

The airline spent more than $3.2 billion on fuel in the second quarter, an increase of 41% over the same quarter in 2019. Delta paid an average of $3.82 a gallon for jet fuel, but it expects to pay between $3.45 and $3.60 in the third quarter. The airline spent more than $3.2 billion on fuel in the second quarter, an increase of 41% over the same quarter in 2019. Delta paid an average of $3.82 a gallon for jet fuel, but it expects to pay between $3.45 and $3.60 in the third quarter.

DAL in the second quarter of FY 22 has reported the adjusted earnings per share of $1.44, missing the analysts’ estimates for the adjusted earnings per share of $1.73, according to analysts surveyed by FactSet. The company had reported 1 percent fall in the adjusted revenue to $12.31 billion in the second quarter of FY 22, missing the analysts’ estimates for revenue of $13.4 billion.

Delta Air Lines Inc. predicted that third-quarter revenue will be 1% to 5% higher than in the same quarter of 2019, even though it expects passenger-carrying capacity to be no more than 85% of 2019 levels, a sign that Delta expects higher fares to remain in place. The company for the third quarter expects capital expenditures to be ~$1.8 billion, and adjusted net debt of ~$20 billion. DAL expects an adjusted operating margin of 11% – 13%.