Delta Air Lines (DAL) Stock: Why The Price Increased Over 3.8% Today

By Amit Chowdhry ● May 17, 2022
  • The stock price of Delta Air Lines, Inc. (NYSE: DAL) increased by over 3.8% during intraday trading today. This is why.

The stock price of Delta Air Lines, Inc. (NYSE: DAL) increased by over 3.8% during intraday trading today. Investors are responding positively to United Airlines’ second-quarter results.

United Airlines said that the capacity is still sharply below 2019 levels as it is estimated to be down 14% from 2019, compared to the prior guidance of it being down 13%. Travel demand is still strong, but the company is facing headwinds from the higher cost of fuel.

Compared to 2019, the total revenue per available seat mile (TRASM) is expected to grow somewhere between 23% and 25% for the second quarter of 2022, which is up from the previous guidance of about 17%.

United Airlines is estimating the average aircraft fuel price per gallon of $4.02, which is up 17% from the prior guidance of $3.43 per gallon. Even though the fuel costs are higher, United Airlines had maintained its guidance of an Adjusted Operating Margin of 10%, which suggests the company is willing to charge higher costs for consumers.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.