We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Delta (DAL) Declines 11% in Six Months: What's Pulling it Down?
Read MoreHide Full Article
Shares of Delta Air Lines (DAL - Free Report) have declined 11.5% in the past six months primarily due to coronavirus-related uncertainties and escalating fuel prices.
Image Source: Zacks Investment Research
The Omicron-induced multiple flight cancellations during Christmas and New Year have weighed on Delta’s shares lately. The airline has canceled hundreds of flights since Dec 24 owing to a spike in coronavirus cases induced by the Omicron variant, as well as bad weather conditions in parts of the United States. DAL expects about 200 cancellations (Delta mainline and Delta Connection flights) per day for Tuesday and Wednesday. The flight cancellations are likely to have hurt the airline’s already weak passenger revenues (declined 52% in the first nine months of 2021 from the 2019 level) in the fourth quarter of 2021. Results will be available on Jan 13.
Escalating fuel prices are an added headwind for Delta and have contributed to the decline in its shares. With fuel expenses comprising a major chunk of airline expenditures, high fuel costs pose a threat to the company’s bottom line. DAL expects fuel price per gallon (on an adjusted basis) for the December quarter to be $2.05-$2.15. In the third quarter, the company recorded adjusted fuel price of $1.94.
Increase in staffing and employee-related expenses is pushing up Delta’s non-fuel unit costs (up 12% year over year in the first nine months of 2021). This also might have weighed on the shares of the company. For the fourth quarter, DAL expects non-fuel unit costs to increase approximately 7% from the 2019 level.
Zacks Rank & Key Picks
Delta carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Transportation sector are as follows:
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 100% in a year’s time.
Expeditors International of Washington (EXPD - Free Report) carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 29.1%.
Shares of Expeditors have appreciated more than 43% in a year’s time.
Schneider National (SNDR - Free Report) carries a Zacks Rank #2 (Buy). The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21%.
Shares of Schneider National have rallied more than 28% in a year’s time.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Delta (DAL) Declines 11% in Six Months: What's Pulling it Down?
Shares of Delta Air Lines (DAL - Free Report) have declined 11.5% in the past six months primarily due to coronavirus-related uncertainties and escalating fuel prices.
The Omicron-induced multiple flight cancellations during Christmas and New Year have weighed on Delta’s shares lately. The airline has canceled hundreds of flights since Dec 24 owing to a spike in coronavirus cases induced by the Omicron variant, as well as bad weather conditions in parts of the United States. DAL expects about 200 cancellations (Delta mainline and Delta Connection flights) per day for Tuesday and Wednesday. The flight cancellations are likely to have hurt the airline’s already weak passenger revenues (declined 52% in the first nine months of 2021 from the 2019 level) in the fourth quarter of 2021. Results will be available on Jan 13.
Escalating fuel prices are an added headwind for Delta and have contributed to the decline in its shares. With fuel expenses comprising a major chunk of airline expenditures, high fuel costs pose a threat to the company’s bottom line. DAL expects fuel price per gallon (on an adjusted basis) for the December quarter to be $2.05-$2.15. In the third quarter, the company recorded adjusted fuel price of $1.94.
Increase in staffing and employee-related expenses is pushing up Delta’s non-fuel unit costs (up 12% year over year in the first nine months of 2021). This also might have weighed on the shares of the company. For the fourth quarter, DAL expects non-fuel unit costs to increase approximately 7% from the 2019 level.
Zacks Rank & Key Picks
Delta carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Transportation sector are as follows:
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 100% in a year’s time.
Expeditors International of Washington (EXPD - Free Report) carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 29.1%.
Shares of Expeditors have appreciated more than 43% in a year’s time.
Schneider National (SNDR - Free Report) carries a Zacks Rank #2 (Buy). The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21%.
Shares of Schneider National have rallied more than 28% in a year’s time.