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(Sharecast News) - Friday sees the release of quarterly results from Delta Air Lines in the US, along with the preliminary Michigan consumer sentiment index for October.
AJ Bell analysts Danni Hewson, Russ Mould and Dan Coatsworth said: "Delta Air Lines has navigated a turbulent period for global aviation with the kind of skill associated with Pete 'Maverick' Mitchell in Top Gun, as despite the disruption from conflict in the Middle East, it has outperformed not only its rivals but the wider US stock market.
"Central to this outperformance has been a focus on premium customers which are less price sensitive and deliver higher margins. Customer loyalty schemes have helped to make revenues more visible and reliable and stood the company in good stead, particularly when compared with low-cost carriers.
"That doesn't mean Delta is entirely immune to rising fuel costs, although the fact it owns a fuel refinery has helped it to insulate it from these pressures. The usual post-summer drop-off in leisure travel demand means Delta will be increasingly dependent on business and corporate travel, which could be affected by the uncertain economic backdrop."
They said investors will want evidence that Delta is remaining disciplined on capacity as it looks to protect its premium fares and sustain its target for a 20% increase in full-year earnings.
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