11/19/2023 0 Comments X 3 terran conflictThat work will continue for another 12 months, he said. The airline lowered its projection for 2023 free cash flow to $2 billion from $3 billion previously, and said its operating margin would be about 11.5%, down from guidance of more than 12% in July.Ī “tremendous amount” of constraints affecting parts and engine maintenance work across the industry is complicating “the last part of the Covid recovery - getting our supply chain and maintenance investment in our fleet to the level of health we need,” Bastian said. Revenue for the full year will increase about 20% year over year, Delta said. and Delta - will have combined revenue of $42.5 billion. That cohort - American Airlines Group Inc., United Airlines Holdings Inc. The airline’s Trainer refinery near Philadelphia, which provides some price relief, is also temporarily shuttered for maintenance.Ī group of 12 US carriers is expected to have a $4.3 billion operating profit in the third quarter, with $4.1 billion of that generated by the three largest airlines, according to Michael Linenberg, a Deutsche Bank analyst. “Fuel prices have moved meaningfully against us over the course of this quarter,” Chief Executive Officer Ed Bastian said in an interview. Read More: Airlines Are Racing to Hunt Down the Fake Parts in Their Fleets And Delta’s maintenance spending climbed unexpectedly on higher costs, longer repair times and supplier problems with engine parts. But airlines were battered by a nearly 25% sequential jump in fuel prices. The stock gained 9.5% year to date through Wednesday to lead other members in the S&P 500 Index of the five largest US carriers.ĭelta is the first major US carrier to report financial results for the third quarter, a period when the largest globally focused airlines benefited as international summer travel extended into the fall. The airline was expected to earn $5.56 by Savanthi Syth of Raymond James, $5.85 by Andrew Didora of Bank of America and $6 by Barclays’ Brandon Oglenski and Jefferies’ Sheila Kahyaoglu.ĭelta’s results, its fourth-quarter and full-year outlook “certainly does not strike us as an entity whose fundamentals are being hit by any demand slowdown,” Stephen Trent, a Citi analyst, said in a note.ĭelta shares rose 0.5% to $36.15 at 9:38 a.m. Several analysts had estimated Delta would make a larger cut to its previous guidance for full-year earnings of up to $7 a share. That compares with $6.03, the average of analyst estimates compiled by Bloomberg. quarterly earnings beat analysts’ estimates, but the carrier cut the high end of its outlook for 2023 profit on rising fuel prices and larger-than-expected aircraft maintenance costs.Īdjusted earnings per share will be $6 to $6.25, Delta said in a statement Thursday.
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