Delta shares increased by more than 5% after profit, sales exceeded expectations

<pre><pre>Boeing, Travelers' losses have contributed to Dow's 75-point decline

Delta Air Lines Inc. shares

DAL, + 0.42%

rose 5.4% toward a 5-month high in premarket trading on Tuesday after the airline reported fourth quarter earnings and sales that exceeded expectations. Net income increased to $ 1.1 billion, or $ 1.71 per share, from $ 1.02 billion, or $ 1.49 per share, in the year-ago period. Adjusted earnings per share, excluding one-time effects, were $ 1.70, above the FactSet consensus of $ 1.40. Revenue rose from $ 10.74 billion to $ 11.44 billion, outperforming the FactSet consensus of $ 11.38 billion. The utilization factor was 85.6%, after 85.2% and above the expectations of 85.1%. Adjusted total sales per seat mile (TRASM) increased 2.4%, exceeding expectations for strong demand for vacation travel, while non-fuel costs per seat mile available (CASM-Ex) were forecast to increase by 4.4% 4% to 5%. Delta expects revenue growth of 5% to 7% in the first quarter, while the FactSet consensus of $ 11.08 billion implies growth of 6.3%. The stock rose 12.3% in the past three months to Monday, while both the Dow Jones Transportation Average

DJT, + 0.81%

and the Dow Jones Industrial Average

DJIA, + 0.29%

gained 7.9%.