Fuel Hedge Vs. Seat Revenue - Delta Air Lines (DAL) Shares Finish Higher After Favorable Report

Shares of Delta Air Lines (NYSE: DAL) ended the day up almost 6% while the rest of the airline sector averaged 1-2% higher.

The stock may have gotten a boost from a report this morning, in which the Company said a key metric, revenue per available seat mile, would be up in Q2, with help from business travelers and the recent expansion in New York. However, the company will also see approximately $155 million in fuel hedge losses (potentially better than originally expected) from the recent decline in fuel prices. Separately, Delta will also take a charge tied to early employee retirement/severance of approx. $170 million.

Several other airline stocks, including United (NYSE: UAL), will probably report similar numbers, with revenues from travels up, but crude hedging losses.

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