Cramer says Delta Air Lines' earnings miss doesn't tell the whole story
CNBC’s Jim Cramer said Delta's disappointing headline numbers overshadowed signs of strength.
TL;DR
- Delta Air Lines missed earnings expectations and reduced its full-year profit forecast.
- Fuel costs increased by 60% year-over-year.
- Despite higher expenses, Delta maintained roughly flat adjusted pretax profit by generating additional revenue.
- Revenue from premium seating increased by 18%, surpassing main cabin revenue.
- Delta's loyalty business, particularly its partnership with American Express, also showed strength, with revenue rising 15%.
- Jim Cramer believes these factors indicate Delta is becoming a more resilient business beyond traditional cyclical airline performance.
- Cramer anticipates substantial profits for Delta once fuel prices decrease.