Delta Air Lines (DAL) Tops Q3 EPS by 5c

October 13, 2016 7:03 AM EDT
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Price: $48.31 +1.13%

EPS Growth %: -2.3%

Financial Fact:
Cargo: 165M

Today's EPS Names:
GCO, ALCO, BIG, More
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Delta Air Lines (NYSE: DAL) reported Q3 EPS of $1.70, $0.05 better than the analyst estimate of $1.65. Revenue for the quarter came in at $10.48 billion, versus $11.11 billion reported last year.

"Delta's resiliency stood out this quarter as we worked through the outage, continued revenue headwinds, and volatile fuel prices to produce the industry's best operational reliability and service for our customers along with solid margins, cash flows and returns for our owners," said Ed Bastian, Delta's chief executive officer. "With our focus on building a more sustainable and durable business, we will be taking a cautious approach to 2017 by keeping our capacity in line with the December quarter's 1 percent growth level."

Revenue Environment

Delta's operating revenue for the September quarter decreased 5.6 percent, or $624 million, of which $100 million was due to the outage and $70 million was from prior year Yen hedge gains. Passenger unit revenues declined 6.8 percent, including nearly 2 points of impact from the outage and Yen hedges, on a 1.5 percent increase in capacity.

"While we were encouraged by our unit revenue trends through the September quarter, we have more work ahead of us to achieve our goal of positive unit revenues," said Glen Hauenstein, Delta's president. "With further slowing of our capacity growth in the December quarter and additional traction on our revenue management initiatives, we should make progress against that goal and we expect our December quarter unit revenues to decline by 3 – 5 percent year over year."

Increase (Decrease)

3Q16 versus 3Q15

Change

Unit

Passenger Revenue

3Q16 ($M)

YOY

Revenue

Yield

Capacity

Mainline

4,615

(3.3) %

(7.4) %

(5.3) %

4.4 %

Regional

1,456

(5.2) %

(5.7) %

(4.2) %

0.5 %

Total Domestic

6,071

(3.8) %

(7.2) %

(5.2) %

3.7 %

Atlantic

1,671

(8.0) %

(9.7) %

(6.6) %

1.9 %

Pacific

758

(14.5) %

(7.4) %

(9.3) %

(7.7) %

Latin America

571

(1.9) %

1.4 %

(0.9) %

(3.2) %

Total Passenger

9,071

(5.5) %

(6.8) %

(5.3) %

1.5 %

Cargo Revenue

167

(14.8) %

Other Revenue

1,245

(5.4) %

Total Revenue

10,483

(5.6) %

For earnings history and earnings-related data on Delta Air Lines (DAL) click here.



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