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Delta Air Lines (DAL) reports in a SEC filing (8-K) that unit revenues in March rose 2% Y/Y with...

Delta Air Lines (DAL) reports in a SEC filing (8-K) that unit revenues in March rose 2% Y/Y with gains from trans-Atlantic and Latin units partially offsetting a soft performance in the Pacific due to a weakening yen. The carrier says the reduction from previous guidance is due to lower close-in bookings. DAL -4.1% premarket.
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Comments (2)
  • DaveReller
    , contributor
    Comments (11) | Send Message
     
    Not seeing the logic in the big drop in DAL. Unit revenue rose YoY, improved margins over Q1 '12, and the company is still forecasting their first Q1 profit since 2000, yet the stock is off almost 7% so far today. What am I missing?
    2 Apr 2013, 11:01 AM Reply Like
  • mrholty
    , contributor
    Comments (1025) | Send Message
     
    I agree with you as its not as bad as some thing but its definitely not great. Just a month ago they guided to a PRASM of 2.5-3.5% on a decreased capacity of 2%. We already saw the reduced capacity in Jan and Feb so you could kind of back into the #s.

     

    Remember this PRASM group is on tough comps from Q1 last year so its ok but not great. This looks like our general economy slow and choppy growth. The stock over the last 6 months clearly was expecting more.

     

    Add in the fact that easter was early this year and lots of schools Spring Breaks are driven off that and March should have been very strong from a pricing perspective but if they can't get a big pricing push in a busy time what sort of pricing will they hold in the shoulder season.

     

    FD: holding my UAL shares - Will sell in May like I usually do unless I see great #s for April from both UAL and DAL.
    2 Apr 2013, 11:35 AM Reply Like
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