Delta Air Lines (DAL.US) is anticipated to experience a double-digit increase in both revenue and profit during Q4, with the market closely monitoring its performance during the holiday season.
AInvestThursday, Jan 9, 2025 10:40 pm ET
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DAL --

Delta Air Lines (DAL.US) is set to announce its fourth-quarter earnings on January 10, and investors will closely monitor comments regarding the impact of the holiday season.The market anticipates Delta Air Lines Q4 revenue of $14.59 billion, up 2.6% YoY; EPS of $1.74, up 35.9% YoY.The US airline industry may face challenges such as fuel price volatility, inflation pressure, and limited aircraft deliveries.Seeking Alpha contributor Vinay Utham suggests that investors should focus on the impact of the holiday on Delta Air Lines' performance and the latest development regarding the lawsuit against CrowdStrike (CRWD.US).Utham adds that Delta Air Lines' record of achieving revenue and EPS expectations is mixed, along with recent performance, investors should exercise caution before the earnings release.Last October, Delta Air Lines filed a lawsuit in a Georgia court against CrowdStrike over a July outage that crippled its computer systems and forced the cancellation of about 7,000 flights.Delta Air Lines reiterates its 2024 guidance and expects a 3% to 4% YoY increase in capacity in 2025, with revenue up in the low single digits and non-fuel unit costs up in the low single digits.Seeking Alpha contributor Leon Laake notes from historical data that Delta Air Lines' stock price performance in January is poor, with negative returns in most years, and the stock also performed poorly after its fourth-quarter earnings release.However, another Seeking Alpha contributor Motti Sapir argues that Delta Air Lines is well-positioned to alleviate some concerns.Sapir states that "Risks such as rising fuel costs and geopolitical issues do exist, but Delta Air Lines' strategic initiatives and efficient operations alleviate these concerns. Positive market sentiment and Delta Air Lines' focus on high-profit services and fleet upgrades indicate significant growth potential, making it a good time to invest."Delta Air Lines' revenue and profit in the third quarter of 2024 fell short of expectations.In the past two years, Delta Air Lines' probability of exceeding EPS expectations is 63%, and revenue expectations is 75%.The company's stock price rose 49.6% in 2024.

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