Deutsche Bank Markets Research Rating Buy Forecast Change North America United States Et:nano T:ckot Price at 6Jun 2014 1USDI 42.23 Industrials DAL N DAL US NYS DAL Price Target 48.00 Airlines 52...yea range 42.23 - 17.36 Delta Air Lines, Inc. Date 9 June 2014 EPS momentum carrying into 2H 2014/2015; Raising estimates/PT EPS momenium 'yen by better revenue e<pec led to continue Since the start of the quarter, revenue trends have been stronger-than- expected. In May, Delta unit revenues increased 7%, at the high end of the company's +6% to 7% range (tightened higher from +5% to 7% in the beginning of May). That PRASM came in at the high end of the tightened range could reflect better close in (i.e. business) bookings, in our view. Given that we are seeing similar trends across our US airline coverage universe, we believe that we are not only seeing the benefits of consolidation, but that the macroeconomic backdrop is also improving. As such we are raising our June Q and Pi 2014/2015 estimates and raising our PT: Buy. Jet fuel should also provide a tailwincl In addition to the aforementioned strength in revenue trends, we have also seen jet fuel crack spreads narrow markedly over the past month and a half, providing a further boost to June Q earnings. Jet fuel spreads to Brent and WTI have decreased 34% and 20% since mid-April, so while Brent and WTI are trading at similar levels the price of jet fuel per gallon has fallen 4%. Raising June 0, 2014, and 2015 riarnmcbl We are raising our June 0 2014 EPS estimate to $1.05 (vs. consensus of $1.02) from $1.00 as strong revenue and lower fuel prices are better-than-expected. We expect the revenue strength seen in the June Q to continue in the second half of 2014 and into 2015 as the benefits of the last round of consolidation provide better pricing power and the macro backdrop improves. As such, we are raising our 2014 and 2015 EPS estimate to $3.05 (vs. consensus of $3.04) fr