Has Delta Air Lines, Inc (NYSE:DAL) dealt with summer well?
Airlines will be reporting their earnings this week and mixed result are expected to be posted. The Q2 reports will give investors some idea about how airlines are faring in the summer season. Delta Air Lines, Inc (NYSE:DAL) will be kicking-of its results today. The average analyst estimate is that it will be posting an increase of 36% in its quarterly earnings to 94 cents/share but the revenue is expected to plateau at $9.7B. Over the past two quarters, DAL’s traffic has been pretty weak. However, the airline did cut its capacity to fill up its planes more optimally.
Of late, there has been a lot happening at Delta. Last week, the airline announced that from the start of November, it will be hiring 300 pilots. As per the Atlanta Journal Constitution, this is the first time since 2010 that pilot-hiring is taking place at DAL. In June, the Justice Department as well as the European Commission granted the airline permission to buy a 49 percent stake for $360M, in Virgin Atlantic, Richard Branson’s airline. Approval from the transportation department is still awaited.
Over the next three years, DAL plans on bringing capital appreciation to its shareholders via a heavy-duty $1B share repurchase program. In addition, it has initiated a $0.06 per share dividend offer. Delta is also expanding global operations. It very recently opened Terminal 4 at the JFK airport in NY. This will help in giving it a more prominent presence in the international market.
The carrier truly seems unstoppable. It has also entered into a partnership with Gol Linhas Aereas Inteligentes SA to increase its exposure to Brazil’s market. DAL has also received approval to fly the Atlanta – Sao Paulo route. This is South America’s most-important economic center. The company has also received authorization to fly the Sao Paulo route. This is South America’s most prominent economic center. And so, if investors want to know if Delta has dealt with the summer well, it has not just dealt with it, but outshone the sun.