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Delta Air shares fly higher premarket after third quarter beats market estimates

We expect fourth-quarter unit revenues to be up two to four percent with all entities in positive territory by year end," said President Glen Hauenstein

Delta Air Line aeroplane
We are confident we can deliver our long-term two percent cost target for 2018 and beyond.

Delta Air Lines Inc. (NYSE:DAL) saw its shares fly higher in premarket trade after its set of results for the third quarter beat Wall Street’s expectations.

Its shares rose 1.80% to US$53.65 in premarket trade.

In the quarter, the airline said net income came in at US$1.18bn, or US$1.64 a share, up from in the quarter, against US$1.26bn, or US$1.69 a share, in the year-earlier period.

READ: Delta Air Lines shares fly lower ahead of third quarter results

Adjusted per-share earnings came to US$1.57, ahead of the market’s expectations for US$1.53.

Revenue also beat market consensus, rising to US$11.1bn from US$10.5bn, against expectations for US$11.0bn.

Pre-tax earnings were hit by operational disruption caused by Hurricane Irma, which lashed  the Caribbean, Florida and Georgia, including the company's hub in Atlanta.

Long term 2% cost target on track

"Three of four entities reported positive unit revenues, and we see continued opportunity in business yields," President Glen Hauenstein said in a statement.

"We expect fourth-quarter unit revenues to be up two to four percent with all entities in positive territory by year end."

Paul Jacobson, Delta’s chief financial officer added: “ ...with the productivity from our fleet, maintenance and technology initiatives combined with the determination of the Delta team, we are confident we can deliver our long-term two percent cost target for 2018 and beyond.”

Quick facts: Delta Air Lines

Price: 56.83 USD

NYSE:DAL
Market: NYSE
Market Cap: $36.75 billion
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