Delta Air Lines (NYSE: DAL) reported second-quarter profit on Thursday that topped analysts' expectations.
The Atlanta-based Delta posted adjusted earnings per share of $1.77, compared with Wall Street estimates of $1.72 a share.
Revenue in the three months ended in June rose 10% from the year-ago period to $11.78 billion, compared with analyst expectations of $11.72 billion.
Airlines are grappling with a roughly 60% rise in fuel costs over the past year, generally carriers' second-largest expense after labor. Delta shares are off 11% in 2018.
Delta's second-quarter net income fell 14% from a year ago to $1.03 billion, as higher fuel costs ate into the airline's bottom line. The airline's fuel bill was up 40% in the second quarter from a year ago.
"With an expected $2-billion higher fuel bill for 2018, we are now forecasting our full-year earnings to be $5.35 to $5.70 per share. We have seen early success in addressing the fuel cost increase and offset two-thirds of the impact in the June quarter," said Ed Bastian, Delta's Chief Executive Officer.
Looking ahead to the current quarter, which ends in September, Delta forecast per share between $1.65 and $1.85 and for the full year it expects to earn $5.35 and $5.70 a share, down from a forecast it made in January of $6.35 to $6.70 a share, due to high fuel costs.
Shares surged 55 cents, or 1.1%, to $50.39 Thursday morning, within a 52-week trading range from $44.59 to $60.79.
