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Delta Air Lines (DAL) Misses on Q2 Earnings


Delta Air Lines, Inc. DAL is the one of the largest U.S. airlines and provides scheduled air transportation for passengers and cargo across the globe. The Atlanta, GA based Delta has reported higher-than-expected earnings in three of the last four quarters with an average beat of 3.01%.

Zacks Rank: Currently, Delta Air Lines has a Zacks Rank #1 (Strong Buy) but that could change following the company’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Delta Air Lines’ earnings (excluding special items) of $1.64 per share missed the Zacks Consensus Estimate of $1.66. Earnings, however, climbed 11.56% on a year-over-year basis.

Revenue: Operating revenues came in at $10,791 million, below the Zacks Consensus Estimate of $10,817.5 million. Revenues improved 3.3% from the year-ago figure.

Key Stats to Note: The airline behemoth witnessed a 2.5% growth in consolidated passenger revenue per available seat mile (PRASM: a key measure of unit revenue) in the quarter. This was the first quarter in which the carrier recorded quarterly unit revenue growth since the fourth quarter of 2014. For the third quarter of 2017, the carrier expects operating margin in the range of 18% to 20%. The estimated fuel price, including taxes and refinery impact, is expected in the range of $1.55 to $1.60 per gallon for the third quarter. System capacity is expected to be up approximately 2% on a year over year basis. The company expects passenger unit revenue to increase in the band of 2.5% to 4.5% (on a year-over-year basis) in the third quarter. Non-fuel unit cost (including profit sharing) is expected to increase approximately 4% in the third quarter.

Stock Price: The top and bottom line miss disappointed investors. Consequently, shares of the company were down in pre-market trading at the time of writing.

Check back later for our full write up on this Delta Air Lines earnings report later!

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