Airline Stock Roundup: DAL & UAL's Earnings Beat, AAL's Bearish Q4 View & More
Zacks Investment Research | Jan 15, 2019 09:50PM ET
In the past week, Delta Air Lines (NYSE:DAL) kick-started the fourth-quarter 2018 earnings season for the airline space. This Atlanta, GA-based carrier reported better-than-expected earnings but lower-than-expected revenues. For the first quarter of 2019, Delta’s earnings guidance lagged expectations.
Consequently, the stock shed value following the quarterly results despite outperforming on the bottom-line front. Moreover, Delta said that its business is suffering due to the partial federal government shutdown, which is now officially the longest on record (having turned 25 days on Jan 15). As a result of lower government travel, Delta’s revenues are likely to be hurt to the tune of roughly $25 million in January. Launch of its new Airbus A220 jets is also likely to be delayed due to the partial shutdown.
Meanwhile, United Continental Holdings (NASDAQ:UAL) outperformed with respect to earnings and revenues in the fourth quarter. For 2019, the company expects earnings to be between $10 and $12 per share. The Zacks Consensus Estimate is pegged at $10.65.
American Airlines Group (NASDAQ:AAL) was another major newsmaker over the past five trading days, courtesy of its decision to trim earnings per share view for 2018. The airline behemoth also stated that fourth-quarter unit revenues are expected to inch up approximately 1.5%, which is at the lower end of 1.5-3.5% projected earlier. American Airlines is slated to release its fourth-quarter and 2018 results on Jan 24.
JetBlue Airways Corporation (NASDAQ:JBLU) and Hawaiian Holdings’ (NASDAQ:HA) wholly owned subsidiary Hawaiian Airlines too grabbed headlines as they released respective traffic reports for December. Load factor (% of seats filled by passengers) declined at both carriers as traffic growth was outpaced by capacity expansion.
(Read the last Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.