Cramer says Delta Air Lines' earnings miss doesn't tell the whole story

Delta Air Lines missed Wall Street’s earnings expectations and slashed its full-year profit forecast Friday, but CNBC’s Jim Cramer said the results offered encouraging signs that the airline is becoming more resilient.

“Delta’s putting up incredible numbers, to the point where they’re able to offset a huge chunk of the increase in fuel costs,” the “Mad Money” host said. “Once the price of crude comes back down, I think they’ll make out like bandits.”

The carrier reported adjusted earnings of $1.72 per share, below the $1.75 expected by analysts, and lowered its full-year profit guidance as jet fuel costs surged 60% from a year earlier due to the Iran war. But Cramer focused on what got lost in the headline numbers: Delta managed to keep adjusted pretax profit roughly flat despite the sharp increase in expenses.

“That’s incredible,” Cramer said. “Delta’s been able to generate enough additional revenue to offset most of the damage.”

A major bright spot was premium travel. Revenue from premium seating jumped 18%, surpassing revenue from main cabin tickets. Delta also filled a greater share of its premium seats despite charging higher fares.

“Delta added premium capacity, filled more of it and charged more, too,” Cramer said. “This is the best kind of demand and is proving to be pretty sticky.”

The airline’s growing loyalty business is another source of strength. Revenue from its American Express partnership rose 15%, helping Delta generate more revenue beyond traditional ticket sales.

For Cramer, those trends reinforce his thesis that Delta is evolving beyond a traditionally cyclical airline into a more durable business built around loyal customers, premium offerings and diversified revenue streams.

He also sees an eventual decline in fuel prices as a major catalyst. Delta has been raising fares to offset higher costs, with customers showing limited resistance. “Once the war with Iran ends, or at least fizzles to the point that oil can come down, this airline will be printing money,” Cramer said.

Still, Cramer isn’t rushing to buy airline stocks while fuel prices remain elevated. But he remains optimistic about Delta’s longer-term prospects.