Delta Air Lines, Inc. (NYSE:DAL) stock rose 2.38% (As on April 11, 11:24:03 AM UTC-4, Source: Google Finance) after the company narrows first-quarter profit and said that demand for travel is strong heading into the summer. Delta reported the highest revenue for any first quarter in its history and a $37 million profit. Delta led the industry in completion factor and on-time performance, and operated 26 cancel-free, brand-perfect days in the quarter. Adjusted total unit revenue (TRASM) growth improved 3 points sequentially from the December quarter 2023 to down 0.7 percent year-over-year, including a nearly one-point headwind from cargo and MRO. Managed corporate sales* grew 14 percent year-over-year, led by the return of large corporate accounts, particularly in the Technology, Consumer Services and Financial Services sectors. Recent corporate survey results indicate that 90 percent of companies expect their travel volumes to increase or stay the same in the June quarter and beyond. For the quarter, diversified revenue streams, including Loyalty, Premium, Cargo and MRO comprised 57 percent of total revenues. Premium revenue grew 10 percent versus the March quarter 2023, continuing to outperform Main Cabin. Loyalty revenue was up 12 percent, driven by continued co-brand spend growth and increasing premium card mix. Remuneration from American Express for the March quarter was $1.7 billion, approximately 5 percent higher than the March quarter 2023.

Moreover, International passenger revenue was 12 percent higher versus the March quarter 2023, with Transatlantic passenger unit revenue (PRASM) up 2 percent.  Domestic unit revenues were a March quarter record, growing 3 percent year-over-year with record domestic load factors.

DAL in the first quarter of FY 24 has reported the adjusted earnings per share of 45 cents, beating the analysts’ estimates for the adjusted earnings per share of 36 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 8 percent to $13.75 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $12.84 billion.

Additionally, Adjusted net debt of $20.2 billion at March quarter end, a reduction of $1.2 billion from the end of 2023. Adjusted operating cash flow in the March quarter of $2.5 billion, with gross capital expenditures of $1.1 billion, free cash flow was $1.4 billion.

For the current quarter ending in June, Delta expects its per-share earnings to range from $2.20 to $2.50. The Wall Street consensus was $2.22 per share. The company expects full-year earnings in the range of $6 to $7 per share.