Earnings Preview: Delta Air Lines

Delta Air Lines (DAL) is expected to report Q3 earnings on Thursday, October 22 before the market open with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for EPS of (5c) on revenue of $7.61B. The consensus range is (7c)-5c for EPS, and $7.52B-$7.73B for revenue, according to First Call. When Delta reported it Q2 results it also noted it has achieved more than $200M in synergy benefits from its merger with Northwest Airlines in the first half of 2009, and expects to generate at least $500M in total synergies in 2009. The company provided some guidance in mid September, expecting Q3 cap-ex of $270M and operating margin between 3%-4%. Delta's Q3 capacity guidance was not as positive expecting mainline capacity down 5%-6%, domestic capacity down 3%-4% and system capacity down 4%-5%. Despite the lowered capacity numbers investors should note the company's shares have jumped almost 49% since it last reported earnings, and Delta has topped analysts estimates every quarter in FY09.

Comments

[Delta Don:]

IF DELTA WOULD IMPROVE ITS PASSSENGER SERVICE TO THE FORMER LEVEL THEY WERE NOTED FOR THEY MIGHT RETURN TO PROFITABILITY SOONER. THE FORMER WE LOVE TO FLY AND IT SHOWS, WE ARE READY WHEN YOU ARE NO LONGER EXISTS AND SO DOES THEIR PASSENGER SERVICE. TOP MANAGEMENT HAS CHOSEN THE WRONG DIRECTION WHERE THEY ARE LEADING THIS FORMER GREAT AIRLINE. THE WAY THEY NOW TREAT THEIR CUSTOMERS THEY MIGHT AS WELL RETURN TO WHERE THEY STARTED FROM."CROP DUSTING".

Nov 01 08:49 AM