Delta's Reaffirmed Full-Year Outlook Shows Earnings Resiliency, Sets Airline Up for Strong 2027, Deutsche Bank Says
Delta Air Lines' (DAL) decision to reiterate its full-year outlook despite incurring an estimated $3.5 billion fuel headwind signifies its earnings resiliency and sets up the air carrier for a strong 2027, Deutsche Bank said in a client note emailed Monday. The company last week reported better-than-expected second-quarter results amid robust demand and maintained its full-year outlook for per-share adjusted earnings of $6.50 to $7.50 and free cash flow of $3 billion to $4 billion. In the earnings release, Chief Executive Ed Bastian mentioned Delta incurred its "highest quarterly fuel expense" in the airline's history. Fuel price surged 75% to $3.93 per gallon on an adjusted basis, pushing fuel expenses 77% higher annually to $4.41 billion in the second quarter. The company anticipates an all-in fuel price of about $3.15 per gallon in the current quarter. Crude oil prices soared in the aftermath of the Middle East war, but retreated last month as the US and Iran agreed to a memorandum of understanding in June. However, recent renewed tensions between the two countries have seen prices resume their volatility. Deutsche was "pleasantly surprised" by Delta reaffirming its.
Delta Air Lines' (DAL) decision to reiterate its full-year outlook despite incurring an estimated $3.5 billion fuel headwind signifies its earnings resiliency and sets up the air carrier for a strong 2027, Deutsche Bank said in a client note emailed Monday.
The company last week reported better-than-expected second-quarter results amid robust demand and maintained its full-year outlook for per-share adjusted earnings of $6.50 to $7.50 and free cash flow of $3 billion to $4 billion.
In the earnings release, Chief Executive Ed Bastian mentioned Delta incurred its "highest quarterly fuel expense" in the airline's history.
Fuel price surged 75% to $3.93 per gallon on an adjusted basis, pushing fuel expenses 77% higher annually to $4.41 billion in the second quarter.
The company anticipates an all-in fuel price of about $3.15 per gallon in the current quarter.
Crude oil prices soared in the aftermath of the Middle East war, but retreated last month as the US and Iran agreed to a memorandum of understanding in June.
However, recent renewed tensions between the two countries have seen prices resume their volatility.
Deutsche was "pleasantly surprised" by Delta reaffirming its.