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Delta posts strong earnings

New York CNN  —  Delta Air Lines reported vastly improved earnings in the first quarter, and the company said results should remain strong the rest of the year. The Atlanta-based airline said its adjusted earnings came in at $380 million, or 45 cents a share, up from $217 million, up 75% from a year earlier. It easily topped Wall Street analysts’ consensus forecast of 36 cents a share. Revenue of $12.6 billion was up 6% and a record for the first three months of the year. It posted the increase despite the average revenue passengers paid to fly every mile slipping 2% in the period. Passenger revenue when adjusted for capacity, another measure of fares, was flat compared to a year ago. The first quarter is typically the least profitable period of the year for US airlines. Delta predicted it would report record revenue in the second quarter, it said it expects thinner profit margins. So it now expects earnings per share of between $2.20 to $2.50, which would be down from the record adjusted earnings per share of $2.64 a year ago. But it said it remains on target to reach full-year of $6 to $7 per share, which could be above the $6.25 a share it reported for 2023. Delta has been less affected that some of its major rivals whose operations were disrupted by problems at Boeing. Delta has no 737 Max jets in its fleet currently, although it has placed orders for some of the jets. Only about half of its mainline jets come from Boeing, compared to about 80% of United Airlines’ fleet, and 100% of the planes flown by Southwest. Shares of Delta gained 5% in premarket trading on the report.