Why Delta Air Lines Shares Are Diving Today
Portfolio Pulse from Akanksha Bakshi
Delta Air Lines Inc (DAL) shares dropped approximately 5% following its Q4 and fiscal 2023 results. Despite beating revenue consensus with $14.22 billion and adjusted EPS of $1.28, the company saw a decrease in adjusted operating income and margin, and a decline in cargo revenue and total revenue per available seat mile. Passenger load factor slightly decreased, while adjusted operating expenses and non-fuel costs rose. Delta reported strong liquidity and a reduction in adjusted net debt. The company also announced a purchase agreement with Airbus SE (EADSY) for twenty A350-1000s and a service agreement for Trent XWB-97 engines. DAL provided a positive outlook for 2024 with expected earnings growth and free cash flow generation.
January 12, 2024 | 2:34 pm
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NEUTRAL IMPACT
Delta Air Lines reported higher than expected Q4 revenue and adjusted EPS, but saw a decrease in adjusted operating income and margin. The company announced a positive outlook for 2024 and a significant purchase agreement with Airbus.
Despite the short-term negative reaction to the mixed financial results, the positive outlook for 2024 and the strategic purchase agreement with Airbus could provide stability and growth prospects, potentially offsetting the short-term impact.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Airbus SE entered into an agreement with Delta Air Lines for the sale of twenty A350-1000s, with options for twenty more, and a service agreement for engines, indicating a strong business relationship and potential future revenue.
The agreement with Delta Air Lines for aircraft and services is likely to be seen as a positive development for Airbus, indicating future revenue streams and strengthening its order book.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80