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Delta's July Traffic Data Strong on Solid Air Travel Demand

Zacks Equity Research

Delta Air Lines DAL reported impressive traffic figures for July. Consolidated traffic, measured in revenue passenger miles (RPMs), increased 5.2% to 23.77 billion on strong demand for air travel.

Consolidated capacity (or available seat miles/ASMs) also climbed 3.5% to 26.41 billion on a year-over-year basis. With traffic growth outpacing capacity expansion, load factor (percentage of seats filled by passengers) expanded140 basis points to 90%.

Additionally, this Zacks Rank #1 (Strong Buy) company recorded an on-time performance (mainline) of 80.9% and a completion factor (mainline) of 99.7%. Notably, Delta’s passenger count rose 6.3% to 19.4 million in the month. You can see the complete list of today’s Zacks #1 Rank stocks here.

Delta Air Lines, Inc. Price

 

Delta Air Lines, Inc. Price

Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote


 

On a year-to-date basis, Delta registered RPMs of 138.57 billion (up 5.5%) and ASMs of 160.59 billion (up 4.6%). As a result, load factor improved 80 bps to 86.3%.

With the earnings season ongoing, let’s shed some light on the carrier’s second-quarter earnings report announced last month. The company’s earnings (excluding 14 cents from non-recurring items) of $2.35 per share outpaced the Zacks Consensus Estimate of $2.29 and also surged 32.8% on a year-over-year basis. Higher revenues aided the quarterly results.

Operating revenues totaled $12,536 million, which surpassed the Zacks Consensus Estimate of $12,499 million. Moreover, it compared favorably with the year-ago number. (Read more: Delta Stock Up on Q2 Earnings Beat, Upbeat View)

Other key airline players, namely United Airlines UAL, Alaska Air Group ALK and Spirit Airlines SAVE also reported better-than-expected earnings and revenues for second-quarter 2019.

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Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
 
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
 
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
 
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
 
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