Delta Air Lines (DAL) Stock: Why The Price Increased Over 4% Today

By Amit Chowdhry ● Apr 13, 2022
  • The stock price of Delta Air Lines, Inc. (NYSE: DAL) increased by over 4% during intraday trading today. This is why.

The stock price of Delta Air Lines, Inc. (NYSE: DAL) increased by over 4% during intraday trading today. Investors appear to be responding positively to the company’s first-quarter results and guidance.

Delta said it is expecting to return to a profit in this quarter due to an increase in bookings and fares, which helps them cover increasing fuel costs. And Delta is expecting unit revenues to increase double-digits during the second quarter compared to the same period in 2019.

Plus the sales overall are expected to be recovered to as much as 97% of the sales generated three years ago. Plus sales overall will be recovered to as much as 97% of sales generated three years ago before Covid devastated travel demand.

Last month, had logged its highest bookings in history according to CEO Ed Bastian in an interview with CNBC’s “Squawk Box” today. And Bastian is expecting consumers to prioritize travel despite inflation concerns.

“People have been cooped up for the last two years,” said Bastian via CNBC. “They’re done investing in their homes and their garden and want to go see someone else’s garden for a change.”

In terms of the financials, Delta reported an adjusted loss per share of $1.23, compared to an analyst consensus of $1.27. And the company reported revenue of $9.35 billion compared to an analyst consensus of $8.92 billion.

The net loss for the quarter was $940 million for the first 3 months of the year. The company’s first-quarter fuel costs increased 6% from 2019 to $2.09 billion.

For the second quarter, Delta is forecasting that 84% of capacity will return compared to the same period during 2019. And the company expects revenue recovery to reach 93% to 97% of the pre-pandemic levels, or about $11.62 billion to $12.12 billion.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.