Categories AlphaGraphs, Other Industries
Earnings preview: Fuel price worries Delta despite record services
Airline companies are set to report earnings this week, beginning with Delta Air Lines (DAL) on Thursday. The industry, as a whole, has been suffering from rising fuel costs, despite seeing an increase in passenger influx. Fuel price inflation had earlier forced Delta to reduce its guidance for Q2 EPS and pre-tax margin.
Delta is slated to report its Q2 earnings on July 12 before the opening bell. In April, the Atlanta-based company had said that it expected pre-tax margin of about 14- 16% and EPS of $1.80 – $2.00 in Q2. But since fuel costs have almost suged 60% compared to last year,
the company now expects pre-tax margin of 13-14% and EPS of $1.65 – $1.75.
Meanwhile, analysts expect Delta to report earnings of $1.72 per share on an earning growth of 8% to $11.67 billion. For Q2, the airline company expects its revenue per available seat mile to grow between 4-5%.
As of Tuesday, the stock is trading up 1.86% at $50.51. Ten out of 11 analysts covering the stock has a BUY rating, with the eleventh one has given HOLD.
Traffic report for June:
In June, Delta flew a record 17.7 million passengers, with June 29 being the second busiest day in its history after June 30, 2017. The company’s revenue passenger miles (RPMs), came in at 21.45 million, up 3% year-over-year. Consolidated capacity or available seat miles (ASM) also inched up 3% to 24.23 million. Load factor remained flat at 88.5%.
Delta Q1 results (click to enlarge)
Most Popular
United Parcel Service (UPS) seems on track to regain lost strength
Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic
IPO Alert: What to look for when Boundless Bio goes public
Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.
Nike (NKE) bets on innovation and partnerships to return to high growth
Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company