Delta Air Lines?is leveraging its premium class offerings and loyalty rewards as two main reasons why it reported record revenue during the second quarter of the year, even as demand flattens and it plans to cut capacity and control costs throughout the rest of the year.?

The second quarter saw Delta with an operating revenue of $16.6 billion, a one percent increase from the year prior, and an operating income of $2.1 billion. Earnings per share was $3.27 (GAAP results).?

"Delta generated record June quarter revenue of $15.5 billion, approximately 1 percent higher than prior year,¡± said Glen Hauenstein, Delta¡¯s president. ¡°Through the quarter, demand trends stabilized at levels that are flat to last year and we continued to see resilience in our diverse, high-margin revenue streams. The team did a great job leveraging Delta's structural advantages to optimize performance in this environment.¡±

Delta expects the next quarter to see a total revenue growth of up to 4 percent, with shareholders earning between $1.25 to $1.75 per share. According to?Reuters, stocks also jumped 13 percent in response to Delta¡¯s positive results.?

CEO Ed Bastian told?CNBC:?¡°Given the level of turbulence that we have seen, whether it¡¯s geopolitical conflicts going on in multiple regions around the world, you have the impact that we¡¯ve seen from?the tariff battles and all the global trade wars?that are being waged. There¡¯s been a big pullback over the start of the year, starting to wane a little bit¡­¡±

The financial success of the past quarter, at least for Delta, comes from reaping the benefits of what travelers are most interested in: premium experiences, international travel and greater loyalty benefits.

While main cabin revenue dropped 5 percent, premium cabin revenue grew 5 percent from last year, with loyalty revenue up 8 percent.?

Revenue gained from Delta¡¯s international network also increased 2 percent, with the Pacific region increasing 11 percent from the same quarter last year. Transatlantic travel to Europe also grew 2 percent above the record it hit last summer.?

Domestic travel is expected to remain flat or drop for the rest of the year. Travel to the United States as well as travel within the United States?is down overall.? ?

While the airline is planning on cutting back on flights to match the waning demand, it also expects the desire for premium travel options and the rewards provided in its Delta SkyMiles loyalty membership program to fuel a strong second half of the year.?

It predicts its full-year results to have an earnings per share ranging between $5.25-$6.25.?

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