Categories AlphaGraphs, Earnings, LATEST

Delta Air Lines posts flat EPS in Q1

Amidst concerns over rising oil prices and overcapacity, Delta Air Lines (DAL), the biggest US carrier by market value, reported first quarter 2018 results, with reported net income declining 2.5% to $547 million and diluted EPS remaining flat year-over-year at $0.77 per share. Adjusted EPS jumped 4.2% year-over-year to $0.74.

Reported operating revenue, meanwhile, surged 9.5% to $9.96 billion, driven by a 3% increase in cargo revenue and a $78 million surge in total loyalty revenue. The airline’s bottomline was also impacted by rising costs related to fuel and related taxes. Expenses in ancillary businesses and refinery increased double-digits during the quarter.

Delta’s total unit revenue, excluding refinery sales, jumped 5% with foreign currency contributing about 0.5 points of benefit. Delta is also seeing its best revenue momentum since 2014, with positive domestic unit revenues, improvements in all international entities, strong demand for corporate travel and double-digit increases in loyalty revenues. The company expects to maintain this momentum going forward and deliver total revenue growth of 4% to 6% for the full year.

The stock surged 2.5% in pre-market trading, post the earnings results.

Delta Air Lines reported better than expected Q1 2018 earnings, despite rising costs

Geographic Highlights

The company saw all its geographic regions deliver positive results, with the Atlantic region reporting double-digit increase in revenue and others posting single-digit increases.

Guidance

For the second quarter of 2018, the company expects EPS in the range of $1.80 to $2.00, while total unit revenue, excluding refinery sales, is expected to be up 3% to 5% year-over-year. On a year-over-year basis, CASM, excluding fuel and profit sharing, is expected to be up 1% to 3% and system capacity is anticipated to increase 3% to 4%.

Earlier in the week United (UAL), American (AAL) and JetBlue (JBLU) raised their Q1 unit revenue targets, in line with Delta, while Southwest Airlines (LUV) cut its unit revenue outlook on the so-called United’s aggressive expansion fears.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top