Earnings Preview: Delta Air Lines

Delta Air Lines (DAL) is expected to report Q3 earnings Wednesday, Oct. 15 before market open, with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for EPS of 1c on revenue of $5.67B. The consensus range is (13c) to 17c for EPS, and $5.4B to $5.82B for revenue, according to First Call.

Analyst Views

The company is set to become the largest airline in the world upon completion of its acquisition of Northwest Airlines (NWA). The merger has been approved by the European Commission, both airlines' pilots unions, and on September 22, the FAA. However, the merger has yet to be completed.

The airline's president and CFO, Ed Bastian, said on September 18, that the company expects its Q3 results to be between "break-even to a modest loss." UBS upgraded Delta Airlines, along with most of the airline sector, on September 15, on the belief airline estimates are too low and will move higher. The firm upgraded Delta, AirTran Holdings (AAI), Allegiant Travel Company (ALGT), AMR Corporation (AMR), Continental Airlines (CAL), US Airways Group (LCC), Northwest Airlines (NWA) and UAL Corporation (UAUA) to Buy from Neutral and JetBlue Airways (JBLU) to Neutral from Sell.

Barclays stated on October 2, it sees major potential upside for the airlines given reduced fuel costs and restrained capacity. The firm's top picks are Delta/Northwest and UAL Corporation.

Comments

[User 265729:]

Well, since we need to pay extra for meals, luggage, etc., why don't we take it a step further?

Everyone can pass the hat around before takeoff to pay the pilot. Not enough money... You'll sit on the tarmac.

It could work. Think about it...

2008 Oct 14 02:18 PM