Top Stories
Top Stories
Market Insider

Airline stocks jump after Delta, Southwest update outlooks

A Delta Airlines airplane takes off from Ronald Reagan Washington National Airport in Arlington, Virginia.
Saul Loeb | AFP | Getty Images

Airline stocks helped the Dow transports rise more than 1 percent Wednesday, after Delta Air Lines and Southwest Airlines both reported encouraging figures.

Delta said on Wednesday that the airline remains focused on returning to positive unit revenue growth, a key industry metric.

"We have a lot of signs, reasons to be optimistic," Delta Chief Financial Officer Paul Jacobson said in a Reuters report, which cited a conference call with investors.

Jacobson said, however, that Delta is on track for an 18 to 19 percent operating margin in the current quarter, slightly below prior guidance of 19 to 21 percent. The company said a power outage that shut down computer systems in August would probably result in a $150 million drop in pretax income.

Joseph DeNardi of Stifel Nicolaus said the lowered margin outlook was in line with expectations.