Delta Air Lines, Inc. (DAL)

Delta Airlines, Inc. (DAL) stock dropped by 8.97% due to a revision in its earnings outlook for the fiscal year 2024 (FY24) despite strong performance in 2023. The revision raised concerns among investors, resulting in a notable decline in the company's stock value.

• Strong 2023 Performance: Delta Air Lines concluded the previous year with robust financial results, doubling its quarterly profit. This achievement was attributed to a resurgence in travel demand, particularly for international journeys, leading to record-breaking revenue in 2023. CEO Ed Bastian expressed optimism about the potential for strong earnings in the current year as well.
• Cut in Full-Year Profit Outlook: However, despite the strong performance, Delta chose to reduce its full-year profit forecast for 2024 compared to its previous predictions. This adjustment in guidance, which now anticipates adjusted earnings per share ranging between $6 and $7 for 2024, is below the more than $7 per share that the carrier had forecasted the previous year. In 2023, Delta achieved adjusted earnings of $6.25 per share.
• First-Quarter 2024 Expectations: Delta remains cautiously optimistic about the first quarter of 2024, projecting a 3% to 6% increase in revenue compared to the same period in the previous year. Earnings per share for the first quarter are estimated to fall within the range of 25 cents to 50 cents, in line with analysts' projections.
• Challenges and Factors Impacting Performance: Despite the positive outlook, the airline industry typically experiences a slowdown during the winter months. Airlines, including Delta, have had to navigate challenges such as cooling fares and rising expenses, including fuel and labor costs. Delta also faces challenges in its aerospace supply chain, particularly in the areas of parts and repairs. Aircraft repairs and the supply chain for parts have not fully recovered to pre-pandemic levels, posing operational difficulties. Furthermore, recent incidents, such as a door plug failure on a Boeing 737 Max 9 aircraft, have affected the aviation industry. The Federal Aviation Administration grounded these Boeing planes, impacting several carriers, including United Airlines and Alaska Airlines.

Delta Air Lines, Inc. Stock (DAL) dropped by 4.44% from $34.68 to $33.14 in the trading on Wednesday October 18, 2023. The reason why DAL stock down today is due to United Airlines' Tel Aviv flight suspensions. Delta Air Lines shares are trading lower in sympathy with United Airlines' (UAL) stock decline. United Airlines has suspended flights to Tel Aviv due to ongoing conflict in the region, which could result in a significant loss of revenue for both airlines. Geopolitical conflicts can also have broader economic consequences that affect the overall health of the airline industry, negatively impacting airline stocks.

Delta Air Lines, Inc. Stock (DAL) dropped by 6.32% from $35.47 to $33.23 in the trading on Wednesday March 15, 2023. The reason why DAL stock down today is due to earnings updates and general jitters emanating from the financial sector. The Atlanta-based airline provided a Q1 forecast reflecting the expectation that revenue will grow to between $11.8B and $12.1B, below the $12.5B consensus on Tuesday. Additionally, the carrier expects earnings per share $0.15 to $0.40 against a consensus of $0.33.

Delta Air Lines, Inc. Stock (DAL) dropped by 3.54% from $39.6 to $38.2 in the trading on Friday January 13, 2023. The reason why DAL stock down today is due to its disappointing guidance. Delta Air Lines beat analyst expectations in the fourth quarter but disappointed on guidance for the coming quarter due to higher labor and network rebuilding costs. Delta's revenue is expected to grow by 15% to 20% in 2023. The company expects earnings of $0.15 to $0.40 per share in the first quarter, below the $0.55 consensus estimate.