Shares of American Airlines Group, Inc. (NASDAQ:AAL) is trading higher on Thursday, in sympathy with Delta Air Lines, Inc. (NASDAQ:DAL) stock after Delta reported better-than-expected third-quarter results.
What happened to DAL: Delta reported third-quarter revenue of $16.67 billion, beating estimates of $15.04 billion. Pro for gasoline. The airline posted third-quarter adjusted earnings per share of $1.71, beating expectations of $1.52.
Delta’s operating margin grew 11.2% in the quarter, slightly above the 9% to 11% range the company forecast in July. Delta also noted that there was positive momentum during the quarter.
“Over the past six weeks, sales trends have accelerated across all regions and in every pre-purchase window, allowing Delta to end the year with momentum,” said Glen Hauensteinchairman of Delta.
Delta’s stock rose to $62 after the airline reported earnings. according to Benzinga Pro. The Atlanta-based company said it expects total revenue growth of 2% to 4% in the fourth quarter, driven primarily by continued growth in the domestic segment and targeted improvement in its Transatlantic unit. Delta also expected fourth-quarter adjusted earnings per share of $1.60 to $1.90, compared with estimates of $1.64.
Why it matters to AAL: American Airlines is the second largest airline in the US United Airlineswill report earnings later this month. American Airlines’ stock price is currently high due to Delta’s positive results, which indicate optimism for the domestic market.
Analysts expect American Airlines to report a loss of 28 cents per share and revenue of $13.64 billion when the company reports earnings on Oct. 23, according to estimates from Pro for gasoline.
The CFO of American Airlines Devon May said in July that more than 70% of its revenue comes from domestic travel, and that the top end of its earnings per share range would be achievable “if the domestic market continues to strengthen.”
AAL Price promotion: Shares of American Airlines were up 0.73% to $11.90 at time of publication Thursday, according to figures from American Airlines Pro for gasoline. The stock traded within a 52-week range of $8.50 to $19.10.
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