Wall Street opened on a quiet note Thursday, pausing after Nvidia’s surge pushed its market cap past $4 trillion, while airline stocks saw gains thanks to an optimistic outlook from Delta.
In the early hours of trading, the Dow Jones Industrial Average slipped 68.24 points (0.15%) to 44,390.06, the S&P 500 edged down 0.83 points (0.01%) to 6,262.43, while the Nasdaq Composite inched up 21.29 points (0.10%) to 20,632.63.
Delta Air Lines, the world’s largest airline by revenue, posted strong second-quarter results and reinstated its full-year guidance after withdrawing it last quarter due to trade-related uncertainty. The upbeat earnings sent Delta’s stock soaring over 10% in early trading and sparked a broader rally in airline shares, including gains for American Airlines, Southwest, and United Airlines.
For the quarter, Delta reported adjusted revenue of $15.5 billion and a 1% increase from the same period last year. Adjusted earnings per share (EPS) came in at $2.10, beating expectations of $2.07. Operating income stood at $2 billion with a 13.2% margin, down 1.5 percentage points year-over-year. Delta restored its full-year EPS forecast to $5.25 to $6.25 and projected free cash flow between $3 to $4 billion. The airline expects current-quarter revenue growth between 0 to 4%, operating margins of 9 to 11%, and EPS in the range of $1.25–$1.75.
CEO Ed Bastian cited improving macroeconomic clarity, recent tax reforms, and progress in global trade negotiations as key reasons for reinstating guidance. He said both business and consumer travel demand is rebounding, especially in premium segments. Delta, which targets high-end leisure and corporate travelers, said its premium cabin revenue grew 5% year-over-year, outpacing its economy segment. Loyalty revenue also climbed 8%, thanks to increased spending and new card signups tied to its American Express co-branded credit card, which brought in $2 billion this quarter.
Despite headwinds from trade tensions, Bastian said international travel demand remains strong, with 80% of Delta’s international travelers being U.S. residents. He added that the airline’s investments in reliability and premium services are paying off, as travelers increasingly seek better value and experiences.