Markets

Delta's (DAL) June Traffic Rises, Q2 Earnings View Intact

Delta Air Lines, Inc . DAL reported traffic figures for June. Traffic, measured in revenue passenger miles (RPMs), came in at 21.45 million, up 3% year over year. Consolidated capacity (or available seat miles/ASMs) also expanded 3% to 24.23 million on a year-over-year basis.

As traffic growth was commensurate with capacity expansion, load factor in the month remained flat. Additionally, the Atlanta, GA-based airline recorded an 81.5% on-time performance and 99.9% completion factor (mainline) for the period under review.

At the end of the first six months of 2018, the carrier generated consolidated RPMs of 108.68 million (up 3% year over year) and ASMs of 127.97 million (up 3.1% year over year). Load factor for the time frame was 84.9% as compared to 85% recorded at the end of the first six months of 2017.

Delta Air Lines, Inc. Price

Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote

Q2 Guidance

The company has reiterated its outlook for the second quarter of 2018. It continues to expect earnings per share of $1.65-$1.75. The Zacks Consensus Estimate for second-quarter earnings stands at $1.75 per share. Additionally, pre-tax margin is anticipated between 13% and 14%. Total unit revenues are still expected to increase 4-5% as demand remains strong across all entities in leisure and business segments, aiding the company in countering the approximate 50% spike in fuel prices.

Meanwhile, non-fuel unit costs are likely to rise approximately 3% year over year. The company also continues with its objective of delivering non-fuel unit growth of less than 2% in the year. Fuel prices are projected between $2.20 and $2.25 per gallon.

However, system capacity is now anticipated to grow approximately 3.5%, the previous forecast was an increase in the 3-4% range. Tax rate in the to-be-reported quarter is estimated to be around 23%.

Zacks Rank & Key Picks

Delta carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX , Atlas Air Worldwide Holdings AAWW and Expeditors International of Washington, Inc. EXPD . While GATX holds a Zacks Rank #2 (Buy), Expeditors and Atlas Air Worldwide sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Shares of GATX, Atlas Air Worldwide and Expeditors have rallied more than 14%, 30% and 26%, respectively, in a year.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

GATX Corporation (GATX): Free Stock Analysis Report

Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report

Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GATX DAL EXPD AAWW

Other Topics

Earnings Stocks

Latest Markets Videos