Delta shares get a lift, domestic demand strong
Delta Air Lines, all-sessions, trimmed its full-year profit outlook, but investors are paying attention to its quarterly results and strong demand. IGTV financial analyst @AngelineOng looks at how Delta shares are reacting.
(Video Transcript)
Delta Air Lines share price gains after results
Turning to the skies, Delta Air Lines shares are rising as we look at the IT platform right now because this is an all-session stock.
What I can show you is actually on the hourly chart. There you have it. There's the reaction, that green bar there. It's currently climbing, extending its gains after its results. Now on first sight, those results don't look too pleasing to the eye: Delta trimming its four-year outlook on higher fuel costs.
Domestic demand for air travel flying high
But if you dig a little deeper, Delta is saying that in fact it's seeing strong business on the domestic side and also demand for overseas trips has remained strong through the autumn season.
Just checking in on some of its peers as well. American Airlines, a similar reaction there, although it is coming off slightly now. Just also checking on UNITED, which is another all-session stock here. As you can see there, a slightly higher kick there after those results from Delta.
What is interesting though - and here's the 'salad dressing' - is what happens in the Middle East. Many of these airlines have, of course, taken action to stop and halt flights to Israel.
At the moment, there hasn't been a development on the oil front yet, but there are concerns that these tensions will leak out to the oil producing countries. And if oil prices go up, then so do costs for airlines.
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