Daily Traders Edge

Delta sees double benefit from tax cut, shares rise

January 12
15:42 2018

Delta Air Lines Inc (DAL.N) is anticipating a double benefit from the U.S. corporate tax cut this year as it saves money on its own bill and expects an uptick in business travel as companies use tax savings to invest in generating new business.

“We’re very excited about the potential for increased business demand with the tax cuts,” Delta President Glen Hauenstein told analysts in a conference call after quarterly earnings on Thursday.

“We haven’t seen that materialize yet, but we expect that to materialize in the first quarter.”

The No. 2 U.S. carrier reported better-than-expected fourth-quarter profit on Thursday, helped by higher business fares and a busy holiday travel season, and forecast even better performance this quarter as demand for travel remains strong across the board.

Continue Reading at Reuters

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