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News
Friday, July 11, 2025
What’s happening: Shares of Delta Air Lines rose sharply on Thursday after the company released its results for the second quarter.
What happened: Although the airline’s earnings contracted in the quarter, the results were better than feared.
Delta’s reinstating its full-year outlook also supported the stock.
How were the results: The Atlanta, Georgia-based company reported a low double-digit decline in adjusted earnings for the latest quarter.
Why it matters: Delta was among the several US airlines to withdraw their full-year guidance in April, as tariffs announced by President Donald Trump weighed on consumer and business confidence and impacted flight bookings.
Although industry experts have indicated some stabilisation in travel demand since then, US passenger traffic has declined compared to last year. Airlines have lowered airfares in a bid to attract more travellers.
Delta reported that its bookings had stabilised and are now flat compared to last year. Its adjusted average fuel price declined to $2.26 per gallon, from $2.64 in the year-ago period.
Passenger revenues jumped 26% to $13.88 billion during the quarter, while cargo revenues rose 7% to $212 million. Meanwhile, other revenue slipped 2% to $2.57 billion. The passenger load factor fell to 86% in the second quarter, from 87% in the year-ago period.
Delta’s adjusted operating incomes fell to $2.05 billion, from $2.27 billion in the year-ago period, while adjusted operating margins shrank to 13.2%, from 14.7%.
“Reflecting our confidence in the business, we are restoring financial guidance with an expectation for earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion, consistent with our long-term free cash flow targets,” CEO Ed Bastian said.
For the current quarter, Delta guided to adjusted profits of $1.25 to $1.75 per share, compared to market estimates of $1.31 per share. Total revenue is expected to be flat to up 4% year-over-year.
How shares responded: Delta Air shares jumped 12.1% to close at $56.78 on Thursday following the release of quarterly results. The company’s stock jumped around 10% over the past month.
What to watch: Investors will continue monitoring tariff-related news from the US, which is expected to impact the overall travel demand.
Context: The CAD/USD forex pair edged lower this morning following strength in the US dollar.
Details: US President Donald Trump announced 50% tariffs on copper imports effective August 1 and warned to impose similar tariffs on semiconductors and pharmaceuticals. This would curtail forex inflows from Canada’s biggest trading partner.
Trump also announced plans to impose 35% tariffs on imports from Canada effective August 1. He also threatened to increase these rates in case Canada retaliates.
Meanwhile, Canada’s merchandise trade deficit widened in June, while private-sector activity shrank for the 7th month in a row, signalling faltering growth in the country. This triggered speculations of the Bank of Canada pausing before loosening its monetary policy.
Strength in the US dollar weighed on the CAD/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained to 97.78.
An increase in the price of crude oil, one of Canada’s major exports, lent some support to the loonie. WTI crude oil prices gained 0.4% to $66.80 a barrel this morning.
The CAD/USD pair fell to 1.3702 this morning.
What to watch: Investors await the release of economic data on Canada’s unemployment rate (1630 UAE Time), employment change (1630 UAE Time) and average hourly wages (1630 UAE Time) today. The unemployment rate in Canada, which rose to 7.0% in May, from 6.9% in the previous month, is expected to rise further to 7.1% in June. Analysts expect employment in Canada to remain mostly flat in June, after 8,800 job adds in May, while average hourly earnings for permanent employees are expected to grow by 3.5% year-over-year in June.
Other Markets: European indices closed mostly higher on Thursday, with the FTSE 100, CAC 40 and STOXX Europe 600 Index up by 1.23%, 0.30% and 0.54%, respectively, and the DAX 40 down by 0.38%.
Ukraine’s President Volodymyr Zelenskyy urged its allies to impose fresh sanctions faster on Russia following another huge strike on Kyiv. The news sent the RUB/USD pair lower in forex trading this morning.
New Zealand’s BusinessNZ Performance of Manufacturing Index climbed to 48.8 in June, from 47.5 in the previous month, lending support to the NZD/USD forex pair.
Peru’s central bank held its benchmark interest rate at 4.5% at its recent meeting, which sent the PEN/USD pair slightly lower in forex trading this morning.
Ireland’s industrial production accelerated to 36.8% year-over-year in May, from 17.7% in the previous month, which lent support to the EUR/USD forex pair.
Brazil’s annual inflation rate rose slightly to 5.35% in June, from 5.32% in the previous month. However, the BRL/USD pair rose in forex trading this morning.
Italy’s 15-year BTP auction (1310 UAE Time), 3-year BTP auction (1310 UAE Time) and 7-year BTP auction (1310 UAE Time), India’s foreign exchange reserves (1530 UAE Time), Mexico’s industrial production (1600 UAE Time), UK’s NIESR monthly GDP tracker (1600 UAE Time), Canada’s participation rate (1630 UAE Time) and building permits (1630 UAE Time), Germany’s current account (1645 UAE Time), Russia’s balance of trade (1700 UAE Time), current account (1700 UAE Time) and inflation rate (2000 UAE Time), Brazil’s business confidence (1800 UAE Time), as well as US WASDE report (2000 UAE Time), Baker Hughes oil rig count (2100 UAE Time), Baker Hughes total rigs count (2100 UAE Time) and monthly budget statement (2200 UAE Time).
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