Delta Leads Airline Rally After Boosting Margin Forecast - Bloomberg

Delta Air Rises After Increasing Forecast on Operating Margin
By Mary Jane Credeur & Jennifer Surane - Jun 13, 2013 3:08 PM
Delta Air Lines Inc. (DAL) rose after the world’s second-largest carrier increased the lower end of its operating-margin forecast for this quarter on strong travel demand and lower jet-fuel costs.
The shares advanced 3 percent to $18.61 at 3:07 p.m. in New York after gaining as much as 4 percent, the most since June 7. The Atlanta-based company’s stock had climbed 52 percent this year through yesterday, as the Bloomberg U.S. Airlines Index rose 39 percent.
Operating margin, a measure of income to expenses, will be 10 percent to 11 percent for the quarter ending June 30, up from a previous outlook of 9 percent to 11 percent, Delta President Ed Bastian said today at a conference hosted by Deutsche Bank in Chicago.
“We’re coming in at the upper end of that range,” he said. “June is shaping up to be a strong quarter. The revenue environment is stable, fuel is declining.”
Demand for travel is strong and bookings in the coming months “look solid,” Bastian said.