Delta Beats Q1 Estimates, Cautious on Fuel Costs

Delta Air Lines reported stronger-than-expected first-quarter results on Wednesday, boosting its shares nearly 13 percent in premarket trading and lifting rival carriers by 9 to 11 percent. The Atlanta-based airline posted adjusted earnings of 64 cents per share, surpassing Wall Street estimates of 57 to 58 cents, while revenue reached 14.2 billion, exceeding forecasts of about 13.97 billion. The positive performance came amid a two-week U.S.-Iran ceasefire announcement, which eased some market tensions following the conflict's escalation in late February.

Despite the upbeat quarterly figures, Delta issued a cautious outlook for the second quarter, projecting adjusted earnings per share between $1.00 and $1.50. That midpoint of $1.25 fell short of the 1.41 analyst consensus. The airline held its full-year guidance steady at $6.50 to $7.50 per share, citing ongoing uncertainty in fuel markets. Jet fuel prices have nearly doubled since the end of February, driven by the Iran conflict and disruptions near the Strait of Hormuz, a vital route for one-fifth of global oil supplies. Delta expects to pay around $4.30 per gallon in the April-through-June period, adding more than $2...