Jim Cramer Highlights Resilience Amid Delta Air Lines' Earnings Miss
Delta Air Lines reported adjusted earnings of $1.72 per share, missing Wall Street's expectations of $1.75 and lowering its full-year profit forecast due to a 60% surge in jet fuel costs from the Iran war. Despite this, CNBC’s Jim Cramer noted that Delta managed to keep adjusted pretax profits roughly flat amid rising expenses. Cramer emphasized positive trends such as strong demand for premium seating—revenue increased by 18%, outpacing main cabin ticket sales—and growth in Delta's loyalty business, including a 15% rise in revenue from its American Express partnership. These developments support Cramer’s view that the airline is becoming more resilient and less cyclical. He also highlighted potential for future gains as fuel prices are expected to decline post-conflict. While he isn't recommending buying airline stocks now due to elevated costs, Cramer remains optimistic about Delta's long-term prospects.
Tickers: $DAL
Topics: airline industry earnings report fuel costs loyalty business premium seating demand