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Delta Air Lines (DAL) Posts Loss in Q2

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Delta Air Lines’ (DAL - Free Report) second-quarter 2021 loss (excluding $2.09 from non-recurring items) of $1.07 per share was narrower than the Zacks Consensus Estimate of loss of $1.41. Loss also narrowed year over year as air-travel demand improved

How Was the Estimate Revision Trend?

The company’s bottom line missed the Zacks Consensus Estimate in each of the last four quarters, the average being 9.02%. With air-travel demand moving north, the Zacks Consensus Estimate for second-quarter bottom line has narrowed to a loss of $1.41 per share from $1.45 loss, 30 days ago.

Delta Air Lines, Inc. Price and EPS Surprise

Delta Air Lines, Inc. Price and EPS Surprise

Delta Air Lines, Inc. price-eps-surprise | Delta Air Lines, Inc. Quote

 

Revenues Better Than Expected

Delta recorded operating revenues of $7,126 million, which beat the Zacks Consensus Estimate of $6,340.9 million. Also, it compared favorably with the year-ago number.

Key Stats to Note: Despite the recent improvement, air-travel demand is still below pre-pandemic levels. The airline behemoth witnessed a 31% decline in consolidated passenger revenue per available seat mile (PRASM: a key measure of unit revenue) in the quarter compared to the second-quarter 2019 levels.

For the third quarter of 2021, the carrier expects capacity to decline in the 28-30% band compared with the reported number in third-quarter 2019. The carrier anticipates total revenues to decline in the 30-35% range from third-quarter 2019 actuals. Adjusted non-fuel unit costs in third-quarter 2021 are expected to increase in the 11-15% band from third-quarter 2019 actuals.

Fuel price per gallon in the September quarter is projected in the $2.05-$2.15 range. Capital expenditures and adjusted net debt are likely to be around $800 million and $19 billion, respectively, in the September quarter.

Zacks Rank: Currently, Delta Air Lines has a Zacks Rank #3 (Hold) 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 (Strong Buy) stocks here.  

Stock Price: The narrower-than-expected loss and revenue beat pleased investors. Shares of the company were up 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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