Delta Airways Q4 Insights and Future Prospects Delta Airways Q4 Insights and Future Prospects

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By Ronald Tech

Delta Air Lines Airbus A330-300 airplane

Delta Air Lines (NYSE:DAL) moved 0.37% lower on Thursday, ahead of its scheduled quarterly results on January 12th, with investors seeking insights into the demand outlook and a potential order for Airbus (OTCPK:EADSY) wide-body jets.

The major U.S. carrier recently reaffirmed its fourth-quarter earnings, underlining robust demand for international travel following pandemic-related restrictions.

The December holiday season witnessed an upswing in airline booking trends, with Bank of America highlighting a 10.7% rise in system net sales for the week ending December 3, surpassing the four-week average.

AAA also forecasted that 7.5 million travelers took to the skies, surpassing 2019’s record of 7.3 million for the season.

Delta is anticipating its Q4 EPS to range between $1.05 to $1.30, with revenue expected to surge by 9% to 12%. For the full year, Delta anticipates revenue growth of up to 20%, an operating margin of around 11.5%, and EPS of $6.00 to $6.25.

However, consensus estimates project quarterly EPS to be $1.16 (-21.6% Y/Y) and revenue at $13.8 billion (+2.7% Y/Y).

Furthermore, Delta Air Lines is poised to procure numerous jets from Airbus, including the A350-1000 aircraft. Reuters reported that the deal may be revealed on Friday when the carrier publishes its quarterly results.

Over the last two years, DAL has surpassed EPS estimates 63% of the time and revenue estimates 100% of the time.

In the last three months, EPS estimates witnessed 10 upward revisions and 5 downward, while revenue estimates had 1 upward revision and 2 downward.

Predicting the impending earnings, Seeking Alpha Analyst Muhammad Umair stated, “The combination of increased demand, strategic revenue diversification, and effective cost management has positioned Delta Air Lines for a successful close to 2023.”

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