- Delta Air Lines (DAL -0.1%) is the first major airline to report earnings this year and give a glimpse on the impact of the U.S. government shutdown on the sector.
- The company cited a $25M hit to revenue in Q1, which works out to about a 25 bp cut to unit revenue.
- Bank of America Merrill Lynch is out with analysis on the Delta update. "While the shutdown should eventually be resolved and the impact be one-time in nature, the near term impact could prove more meaningful than the $25M cited, increasing the near term revenue risk to DAL and other carriers," warns the BAML analyst team.
- Watch for more updates on the government shutdown from Mesa Air (MESA +1.5%), American Airlines (AAL +0.9%), United Continental (UAL +1.5%), Spirit Airlines (SAVE), Southwest Airlines (LUV +1.3%), Hawaiian Holding (HA +1.1%), Alaska Air GRoup (ALK +0.2%), SkyWest (SKYW -0.9%) and Allegiant Travel (ALGT -1%) as earnings season rolls along.