Delta Air Lines (DAL) Misses on Q4 Earnings
JAN. 19, 2016
Delta Air Lines, Inc. (DAL - Analyst Report) is the one of the largest U.S. airlines and provides scheduled air transportation for passengers and cargo across the globe. The Atlanta, GA based company’s route network is centered on the hub system that it operates at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York – John F. Kennedy International Airport , Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-Narita. Delta has reported higher-than-expected earnings in each of the last four quarters with an average beat of 3.03%.

Zacks Rank: Currently, Delta Air Lines has a Zacks Rank #1(Strong Buy) but that could change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Delta Air Lines’ earnings (excluding special items) of $1.18 per share fell short of the Zacks Consensus Estimate of $1.19. Earnings however improved 51% from the year ago figure.

Revenue: Operating revenues came in at $9,502 million, short of the Zacks Consensus Estimate of $9,624 million. Revenues declined 2% from the year-ago figure mainly due to currency woes.

Key Stats to Note: For the first quarter of 2016, the carrier expects operating margin in the range of 18% to 20%. The estimated fuel price, including taxes and hedges, is expected in the range of $1.20 to $1.25 per gallon for the first quarter. System capacity is expected to rise in the band of 2% to 3% on a year over year basis. Passenger unit revenue in the first quarter is projected to decline in the band of 2.5% to 4.5%

Stock Price: The earnings miss disappointed the investors. Shares of the company were down in pre-market trading at the time of writing.

 

Profit Sharing payout is 21.4% of your eligible W2 just FYI.

 

And bought 48 million shares back at $44.50. I think that's about $2,136,000.000. That's billions.

 

Earnings however improved 51% from the year ago figure.

PTIX for 2016 will easily exceed $10 Billion.

 

So, am I to be mad or happy?

I don't even know what to do anymore.




Although. I am glad we turned down that TA. That I do know.

 

From the online earnings report,

"...and we will retire the 9 remaining 747's by the end of next year."

 

2016 fuel hedge book off. $3B savings for 2016, we are now at market fuel. If you add that to the 2015 $7.2B, 2016 at status quo pre-tax will be $10.2B.

 

This is completely consistent with all the long range forecasts from JP Morgan, Deutche Bank, and even ALPA national last summer. But our old NC sold us that this was "at risk" and one we shouldn't take.

To date, voting NO back then was the smartest thing we've done.

 

What actually are "eligible earnings". Is that before or after taxes, 401k etc?
Thanks.

 

But wait!!

We were told by our current C44 FO Rep (until March), the ship is taking on water. We are going to sink. Remember, he has he inside info. Us rocket surgeons flying the line are just clueless DBs gumming up the works.