Delta Air Lines (DAL) and United Airlines (UAL) reported better-than-expected Q2 results, indicating strong demand for premium and international travel. Delta’s adjusted earnings per share (EPS) reached $1.56 on record revenues of $17.66 billion, despite a 77% increase in fuel costs. Delta maintained its full-year EPS guidance of $6.50 to $7.50 and projected about $3 billion to $4 billion in free cash flow.
United reported an adjusted EPS of $1.99 with revenues of $17.67 billion, both surpassing expectations. The airline raised its full-year EPS forecast to $9.00 to $11.00, up from $7.00 to $11.00, reflecting strong growth across premium offerings and international travel.
Both airlines have outperformed the S&P 500 over the last three years, with United gaining over 120% compared to Delta’s 85%. Delta’s stock currently trades at a forward P/E of 13, while United’s stands at 11, highlighting a disparity in earnings profiles and market valuations.
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