Delta Air Lines' Profit Skyrocketed As Travel Demand Stays Strong
Portfolio Pulse from Upwallstreet
Delta Air Lines reported a nearly 60% profit rise in Q3 due to strong travel demand, but guided for full-year earnings toward the lower end of an earlier estimate due to increased fuel prices. The airline's revenue was $14.55 billion, slightly short of the expected $14.56 billion. Delta expects solid travel demand to continue in Q4, with revenue expected to grow 9% to 12% YoY. However, due to fuel price pressures, Delta's costs are expected to increase by $400 million in H2. The airline has also lowered its full-year earnings forecast and cut its full-year free cash flow estimate from $3 billion to $2 billion.
October 16, 2023 | 2:50 pm
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Spirit Airlines cut its profit outlook for Q3 due to intense promotional activity and steep discounting.
Spirit Airlines' cut to its Q3 profit outlook due to intense promotional activity and steep discounting could negatively impact its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Frontier Group Holdings is offering very low fares to sell its flight tickets, which could impact its profitability.
Frontier Group Holdings' strategy of offering very low fares to sell its flight tickets could impact its profitability and stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
American Airlines is due to report its quarterly results this week, and Delta's strong results could set a high bar for the airline.
Delta's strong Q3 results could set a high bar for American Airlines, which could impact its stock price depending on its own results.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Delta Air Lines reported strong Q3 results but lowered its full-year earnings guidance due to increased fuel costs.
Delta's strong Q3 results are a positive sign, but the airline's lowered full-year earnings guidance due to increased fuel costs could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
United Airlines is due to report its quarterly results this week, and Delta's strong results could set a high bar for the airline.
Delta's strong Q3 results could set a high bar for United Airlines, which could impact its stock price depending on its own results.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50