Core Viewpoint - Delta Air Lines is expected to report a disappointing first-quarter 2025 performance due to economic uncertainties and reduced domestic air travel demand, leading to lower earnings and revenue projections [5][20]. Financial Performance Expectations - Delta is projected to report a 2.2% year-over-year increase in earnings and a 0.4% year-over-year increase in revenues for the March quarter [2]. - The Zacks Consensus Estimate for first-quarter 2025 earnings is currently at 46 cents per share, revised 55.3% downward in the past 60 days, while revenues are estimated at $13.8 billion [3]. - Adjusted earnings per share guidance has been reduced to a range of 30-50 cents from a previous range of 70 cents to $1 per share [5]. - The adjusted operating margin is now expected to be between 4-5%, down from the prior guidance of 6-8%, with an expected margin of 4.7% [6]. Revenue Outlook - The total revenues (adjusted) are now expected to increase by 3-4% year-over-year, a downgrade from the previous expectation of 7-9% growth [7]. - Domestic passenger revenues are anticipated to grow by only 0.6% year-over-year, significantly lower than the 4.6% growth recorded in the fourth quarter of 2024 [7]. Cost Factors - Labor costs are projected to rise by 8.6% compared to the first quarter of 2024, which may negatively impact the bottom line [8]. - Conversely, low fuel costs due to declining oil prices are expected to positively influence the bottom line, as fuel expenses are a significant cost for airlines [9]. Stock Performance and Valuation - Delta's stock, along with other major airlines, has seen a significant decline, with shares dropping 28% in the January-March period [12]. - Delta is trading at a forward sales multiple of 0.44X, which is lower than the industry average of 1.25X, indicating a cheaper valuation compared to peers [15]. Investment Considerations - Despite improvements in air travel demand post-pandemic, the recent slowdown, particularly in domestic travel, poses a concern for future passenger revenues [18]. - High labor costs and economic uncertainties are additional challenges, although Delta's liquidity position remains strong, providing operational flexibility [19]. - Overall, the company is expected to have an unimpressive first-quarter performance, primarily due to low passenger revenues [20].

Core Viewpoint - Delta Air Lines is set to hold a live conference call and webcast to discuss its financial results for the March quarter of 2025 on April 9, 2025 at 10 a.m. ET [1] Company Information - The conference call will be accessible via a live webcast at ir.delta.com, with an online replay available shortly after the event concludes [1]

Company Performance - Delta Air Lines (DAL) closed at $48.07, reflecting a -1.23% change from the previous day, underperforming the S&P 500's daily loss of 1.12% [1] - Over the past month, DAL shares have decreased by 21.23%, significantly trailing the Transportation sector's loss of 3.72% and the S&P 500's loss of 2.91% [1] Earnings Expectations - The upcoming earnings report for Delta Air Lines is anticipated to show an EPS of $0.40, which is an 11.11% decline from the same quarter last year [2] - Revenue is expected to reach $13.93 billion, marking a 1.33% increase from the prior-year quarter [2] Fiscal Year Projections - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $6.99 per share and revenue of $63.27 billion, indicating increases of +13.47% and +2.64% respectively from the previous year [3] - Recent changes in analyst estimates suggest a favorable outlook on the company's business health and profitability [3] Valuation Metrics - Delta Air Lines is currently trading at a Forward P/E ratio of 6.97, which is lower than the industry average of 8.44, indicating a discount [6] - The company has a PEG ratio of 0.61, compared to the industry average PEG ratio of 0.66 [7] Industry Context - The Transportation - Airline industry holds a Zacks Industry Rank of 43, placing it in the top 18% of over 250 industries, suggesting strong performance potential [8]

Core Viewpoint - Delta Air Lines has experienced a significant decline in stock value due to lowered consumer and corporate confidence, leading to a drastic cut in Q1 2025 guidance, which has affected the entire airline industry [1][4][5]. Company Summary - Delta Air Lines reported Q4 2024 earnings of $1.05 per share, exceeding consensus estimates by $0.09, with revenue of $15.56 billion, surpassing expectations by over $1.2 billion [2]. - The company raised its Q1 2025 EPS guidance to a range of $0.70 to $1.00, with a midpoint of $0.85, compared to the consensus estimate of $0.77 [3]. - However, Delta issued a downside guidance for Q1 2025, reducing EPS expectations to $0.30 to $0.50, with a midpoint of $0.40, down from the previous estimate of $0.85 [4]. - Revenue growth expectations for Q1 2025 were cut from 7%-9% to 3%-4%, translating to $12.9 billion to $13.1 billion, down from earlier estimates [4]. - For the full year 2025, Delta anticipates EPS of at least $7.35, slightly below the consensus estimate of $7.44 [3]. Industry Summary - The airline industry is facing a collective downturn, with Delta's guidance cuts causing a ripple effect among peers like United Airlines and American Airlines [2][5]. - The first quarter is typically the weakest for demand, and recent events, including severe weather and aircraft accidents, have contributed to a short-term pullback in bookings [6]. - There have been 18 plane crashes in 2025, leading to a significant impact on consumer confidence and travel demand [7]. - Despite the challenges, Delta's CEO noted that oil prices have decreased, potentially saving the company $1 billion annually due to falling gas prices [8].

Company Performance - Delta Air Lines (DAL) closed at $46.89, reflecting a +0.3% change from the previous trading day, underperforming the S&P 500 which gained 0.64% [1] - Over the past month, DAL shares have depreciated by 28.51%, compared to the Transportation sector's loss of 8.84% and the S&P 500's loss of 7.69% [1] Earnings Expectations - Analysts expect Delta Air Lines to report earnings of $0.62 per share, indicating a year-over-year growth of 37.78% [2] - The Zacks Consensus Estimate for revenue is projected at $13.77 billion, up 0.15% from the previous year [2] - For the full year, earnings are projected at $7.24 per share and revenue at $62.6 billion, representing changes of +17.53% and +1.55% respectively from the prior year [3] Analyst Projections - Recent shifts in analyst projections for Delta Air Lines should be monitored, as positive revisions indicate analyst optimism regarding the company's business and profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Delta Air Lines at 3 (Hold) [6] Valuation Metrics - Delta Air Lines has a Forward P/E ratio of 6.45, which is a discount compared to the industry's average Forward P/E of 8.36 [7] - The company has a PEG ratio of 0.56, while the Transportation - Airline industry holds an average PEG ratio of 0.65 [7] Industry Overview - The Transportation - Airline industry is part of the Transportation sector and currently holds a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1: Delta Air Lines Expansion - Delta Air Lines is increasing its services to meet the heightened demand for the football event in Green Bay on April 23 and 24, 2025, with additional flights from major hubs to Austin Straubel International Airport and a special flight from Atlanta to Appleton International Airport [1][2] - The expanded flight schedule provides fans with more travel options and flexibility to attend events at Lambeau Field and other activities in Green Bay [2] - Delta will also offer a special nonstop flight from Green Bay to Orlando on April 23, returning on April 27, along with increased service back to major hubs after the event [3] Group 2: Flight Schedule Adjustments - Delta's adjusted schedule includes multiple increased flights: ATL-GRB increased to 2x, DTW-GRB to 4x, MSP-GRB to 4x, and special flights from LGA, SLC, and LAX to GRB, as well as a special flight from ATL to ATW and GRB to MCO [4] Group 3: Industry Response to Demand - Other airlines, such as SkyWest and Alaska Air Group, are also expanding their services in response to the growing demand for air travel, with SkyWest carrying over 38 million passengers in 2023 and modernizing its fleet [6][7] - Alaska Air Group plans to enhance its international presence by introducing nonstop flights to Tokyo and Seoul, along with expanding its fleet and routes [7] - The overall industry is responding to the booming demand by expanding fleet sizes, launching new routes, and offering more flight options, which is expected to increase passenger revenues [8]

Core Viewpoint - Delta Air Lines, Inc. (DAL) shares declined by 5.54% to $50.33 due to a bearish financial outlook for Q1 2025, which was announced just before a presentation at the J.P. Morgan Industrials Conference [1]. Financial Outlook - DAL has lowered its Q1 2025 adjusted earnings per share (EPS) guidance to a range of 30-50 cents, down from the previous range of 70 cents to $1 per share. The Zacks Consensus Estimate for Q1 EPS is 84 cents [2]. - The adjusted operating margin for the March quarter is now expected to be between 4-5%, a decrease from the prior guidance of 6-8% [2]. - Total revenues (adjusted) for Q1 2025 are now expected to increase by 3-4% compared to Q1 2024, down from the previous expectation of 7-9% year-over-year growth. The Zacks Consensus Estimate for Q1 2025 revenues reflects a year-over-year increase of 4.4% [3]. Market Conditions - The disappointing guidance is attributed to a reduction in consumer and corporate confidence due to increased macroeconomic uncertainty, leading to softness in domestic demand [4]. - Despite the challenges, premium, international, and loyalty revenue growth trends remain consistent, indicating the strength of DAL's diversified revenue base [4]. External Factors - DAL's stock performance has been negatively impacted by recent tariff-related tensions, particularly a 10% tariff on energy resources from Canada, which has led to higher fuel prices and reduced profit margins [5]. - The ongoing trade war between the United States and its major trading partners, including Canada, Mexico, and China, is expected to further affect DAL's business [6]. - Additionally, lawsuits against Delta and its subsidiary, Endeavor Air, following a crash incident, have contributed to the decline in DAL shares [6]. Stock Performance - Over the past month, DAL shares have dropped by 27.1%, compared to an 11.5% decline in the Zacks Airline industry and a 7.5% loss in the S&P 500 index [7].

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Delta Air Lines, Inc. (NYSE:DAL) J.P. Morgan 2025 Industrials Conference March 11, 2025 7:30 AM ET Company Participants Julie Stewart - Vice President, IR Ed Bastian - CEO Glen Hauenstein - President Dan Janki - CFO Conference Call Participants Jamie Baker - JPMorgan Mark Streeter - Managing Director, J.P. Morgan Jamie Baker All righty. Good morning, everybody. My name is Jamie Baker. I cover the North American Airlines and Aircraft Leasing companies on the equity side at JPMorgan. I'm joined by my good fri ...

Core Viewpoint - Delta Air Lines has revised its March quarter outlook downward due to macroeconomic uncertainties affecting domestic demand, with expectations for revenue growth and operating margin both reduced compared to previous guidance [1][2][3]. Revenue Outlook - Delta now anticipates total revenue growth of 3% to 4% year over year for the March quarter, a decrease from the earlier forecast of 7% to 9% [2]. - The operating margin is expected to be between 4% to 5%, down from the previous guidance of 6% to 8% [2]. Demand Factors - The decline in outlook is attributed to reduced consumer and corporate confidence stemming from increased macro uncertainty, leading to softness in domestic demand [3][6]. - Despite the challenges in domestic demand, premium, international, and loyalty revenue growth trends remain consistent with expectations, indicating resilience in Delta's diversified revenue base [3]. Historical Context - In January, Delta had expressed optimism about demand trends, expecting adjusted revenue to be 7% to 9% higher than in 2024, driven by growth in capacity and unit revenue [4]. - The airline's previous guidance was based on strong momentum as it closed out 2024, with accelerating demand trends noted in the fourth quarter [3]. Safety Concerns - Recent safety incidents, including a flight crash, have raised concerns that may have exacerbated the softness in domestic demand, affecting consumer confidence among both leisure and business travelers [5][6]. - The Conference Board reported a significant decline in consumer confidence in February, attributed to worries about trade and tariffs, marking the largest monthly drop since August 2021 [6].