- Delta cannot reaffirm full-year guidance due to current economic uncertainty.
- First-quarter adjusted earnings per share (EPS) were 46 cents, slightly above the previous year’s 45 cents and the estimated 39 cents.
- First-quarter EPS stood at 37 cents, up from 6 cents last year.
- Adjusted revenue was $12.98 billion, in line with the estimated $12.99 billion.
- Passenger revenue reached $11.48 billion, a 3.1% increase year-over-year, matching estimates.
- Cargo revenue grew by 17% year-over-year to $208 million, just shy of the $212.3 million estimate.
- Passenger load factor was at 81.4%, slightly below the estimated 81.9%.
- Available seat miles were 68.40 billion, a 4.4% increase year-over-year, close to the 68.45 billion estimate.
- Revenue passenger miles totaled 55.68 billion, up 2.7% year-over-year but below the 56.01 billion estimate.
- Adjusted net income increased by 3.5% to $298 million, surpassing the $253.6 million estimate.
- Yield per passenger mile improved by 0.4% to 20.62 cents.
- Delta forecasts second-quarter adjusted EPS between $1.70 and $2.30, around the estimated $2.29.
- CEO Ed Bastian noted stalled growth in February and March due to a reduction in corporate confidence.
- Economic uncertainty and stalled global growth impact Delta’s decision-making.
- Delta plans to reduce capacity growth in the second half, actively managing costs and capital expenditures.
- The company expects second-quarter profitability between $1.5 billion and $2 billion.
- Resilience in premium, loyalty, and international sectors partially offsets domestic and main cabin softness.
- Delta aims to deliver strong profitability and free cash flow, supported by a favorable decline in fuel prices.
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Delta Air Lines on Smartkarma
Analyst coverage of Delta Air Lines on Smartkarma showcases a positive outlook from Baptista Research. In their report titled “Delta Air Lines’ Strong 2024: Record Profits,” the analysts highlighted the airline’s impressive performance in the December quarter and full year of 2024. Delta reported a record pretax profit of $1.6 billion in the fourth quarter, surpassing their own guidance. Notably, Delta’s operational excellence stood out with the highest system completion factor and on-time performance compared to its competitors. The airline’s full-year achievements included 78 “Brand Perfect” days and the prestigious Cirium’s Platinum Award for operational excellence for the fourth consecutive year.
A look at Delta Air Lines Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Delta Air Lines, Inc. seems to have a promising long-term outlook, based on the Smartkarma Smart Scores. The company scored high in Growth, indicating a positive trend in terms of expanding its operations and increasing market share. This suggests that Delta Air Lines is focused on future development and investment opportunities, which could lead to potential long-term success.
However, the scores for Resilience and Momentum are lower, implying some challenges in maintaining steady performance and capitalizing on short-term opportunities. While the Value and Dividend scores sit in the middle range, showing a fair balance between perceived worth and shareholder payouts. Overall, Delta Air Lines‘ ability to sustain growth and navigate market headwinds will likely play a crucial role in shaping its future performance and investor sentiment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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