Delta Air Lines (DAL) shares are losing altitude as the airline posted lower-than-anticipated profit and sales, although it gave a bullish outlook for the current quarter.
Delta reported first quarter earnings per share (EPS) of $0.25, with revenue jumping 45.1% to $11.84 billion. Both were below estimates.
Despite this, the results "reflect the strength in the underlying demand environment," said Delta Air Lines President Glen Hauenstein. He noted the carrier set an all-time high for revenue in the period, with total unit revenue 16% higher than in 2019, before the pandemic slump rocked the industry. Hauenstein added that Delta's advanced bookings for the summer are at a record high.
No Slowdown in Demand
"Air travel is something consumers are prioritizing, and while they may be cutting back spending elsewhere, Delta is not seeing that in its business," said CEO Ed Bastian in an interview.
The company anticipates second quarter EPS of $2 to $2.25, with sales up 15% to 17%. Analysts had forecasted EPS of $1.66 and revenue growth of 14.7%.
Shares of Delta Air Lines are falling 0.7% as of 2 p.m. New York time, though they're up 2% for the year. They're lagging shares of rivals United (UAL) and American Airlines (AAL) so far this year, but outperforming those of Southwest Airlines (LUV).
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April 14, 2023 at 01:11AM
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Delta Air Lines Shares Lose Altitude on Lower-than-Expected Profit - Investopedia
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