Delta’s earnings release sent its shares surging by as much as 6%, making it one of the top performers in the S&P 500 on Thursday. The airline sector gained broadly in sympathy, boosted by confidence in resilient travel demand and Delta’s strong execution. Analysts point to Delta’s results as a bellwether of improving fundamentals in the U.S. airline industry, with its positive outlook assuaging concerns about economic slowdown and illustrating the profitability available through strategic capacity management and an elevated focus on premium segments.
Looking to the future, Hauenstein said he thinks Delta is seeing “many, many more opportunities in premium in the coming years.” He cited Delta’s investments in Los Angeles, Boston, New York and Seattle as a platform for growth, because “that’s where a considerable amount of premium lives. Delta historically wasn’t as big in those markets as we are now.”
Delta did not immediately respond to a request for comment.