Shares of Delta Air Lines Inc. reversed an earlier loss to rally 1.7% in premarket trading Tuesday, after the air carrier raised its first-quarter revenue outlook, citing a building of demand momentum, while also boosting its fuel price estimate. The air carrier now expects revenue to be about 78% recovered versus 2019, including about 83% recovery in the month of March, compared with first-quarter guidance provide in January 72% to 76% recovered. Delta said it expects positive free cash flow in March, citing “strong spring and summer travel demand. The company also said it expects first-quarter capacity to be about 83%, compared with previous guidance of 83% to 85%; expected adjusted fuel prices were raised to about $2.80 a gallon from $2.35 to $2.50; and adjusted net debt is expected to be about $21 billion, versus previous expectation of about $22 billion. Delta’s stock has dropped 17.9% year to date, while the U.S. Global Jets ETF has slumped 13.2% and the S&P 500 has lost 12.4%.
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