JBLU, AAL, DAL, LUV, ALK: A roundup of Q2 projections for these airline companies

The airline industry is gaining traction coming out of a pandemic-marred period and demand for travel is rising as vaccines are rolled out and restrictions are eased. Leisure travel has been rebounding at a healthy pace while corporate travel is slowly picking up. Airline companies have been adding routes to meet the rising demand. In spite of this, staff shortages and flight cancellations are playing spoilsport to the summer travel period.

As airline companies get ready to report earnings results for another quarter, here is a snapshot of the expectations outlined by some of the leading players for the second quarter of 2021:

Alaska Air Group

Alaska Air Group (NYSE: ALK) expects revenue for the second quarter of 2021 to be down approx. 33-35% from the same period in 2019. Capacity is expected to be down approx. 20% from 2019 while passenger load factor is estimated to be around 74-76%. Revenue passengers is expected to be down approx. 28-30%. Cost per available seat mile, excluding fuel and special items, is expected to be up around 12-14%. Cash flow from operations is expected to be around $650-750 million.

JetBlue Airways

JetBlue Airways Corp. (NASDAQ: JBLU) expects revenue to decline 30-33% in Q2 2021 compared to Q2 2019. Flown capacity is expected to drop approx. 15% versus the same period in 2019. Operating expenses are expected to decrease around 7% versus Q2 2019.

American Airlines

American Airlines Group (NASDAQ: AAL) expects Q2 2021 revenue to be down approx. 40% versus Q2 2019. System capacity is estimated to be down 20-25% versus Q2 2019. The company expects to end the second quarter with over $20 billion of total liquidity.

Delta Air Lines

Delta Air Lines (NYSE: DAL) expects total revenue on an adjusted basis to decline 50-52% to $6-6.2 billion in Q2 2021 compared to Q2 2019. Scheduled capacity is estimated to be down approx. 32% while sellable capacity is expected to be down approx. 40%. Cost per available seat mile, ex certain items, is estimated to be up around 9%.

Southwest Airlines

Southwest Airlines Co. (NYSE: LUV) projects operating revenues in the month of June to be down approx. 20% compared to the same period in 2019. Revenues in July are expected to be down 15-20% from the same month in 2019. The company expects its capacity for the second quarter of 2021 to increase approx. 87% compared to Q2 2020 and decrease approx. 16% compared to Q2 2019. Operating expenses in Q2 is expected to increase 10-15% year-over-year.

Click here to access the earnings infographics of these airline stocks