March quarter unit revenues expected to decline, impacting Delta’s earnings

  • Airline stocks slide after Delta lowers 2024 earnings guidance
  • Delta expects March quarter unit revenues to be flat to down 3 percent over 2023
  • Delta’s shares fell 5.6% after cutting its earnings outlook
  • Delta expects earnings of $6 to $7 a share for 2024, below the target of over $7 a share
  • Delta also expects 2024 free cash flow of $3 billion to $4 billion, an improvement of up to $2 billion over 2023
  • Shares of American Airlines, United Airlines, and JetBlue Airways are down in premarket trades
  • Shares of Alaska Air Group and the U.S. Global Jets ETF are also down in premarket trades

Airline stocks fell in premarket trades after Delta Airlines Inc. lowered its 2024 earnings guidance. Delta expects March quarter unit revenues to be flat to down 3 percent over 2023, leading to a decrease in its earnings outlook. The company’s shares fell 5.6% as a result. For 2024, Delta expects earnings of $6 to $7 a share, which is below the target outlined in December 2022. However, Delta anticipates an improvement in free cash flow for 2024 compared to 2023. This news has also affected other airline stocks, with shares of American Airlines, United Airlines, and JetBlue Airways declining in premarket trades. Additionally, shares of Alaska Air Group and the U.S. Global Jets ETF are also down.

Public Companies: Delta Airlines Inc. (DAL), American Airlines Group Inc. (AAL), United Airlines Holdings Inc. (UAL), JetBlue Airways Corp. (JBLU), Alaska Air Group Inc. (ALK)
Private Companies:
Key People: Glen Hauenstein (Delta President)

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Factuality Level: 7
Justification: The article provides information about Delta Airlines lowering its 2024 earnings guidance and the impact on airline stocks. It includes quotes from Delta’s President and mentions the company’s fourth-quarter results. The article also mentions the stock performance of other airlines and Delta’s order of Airbus A350-1000 aircraft. Overall, the article provides factual information without any major issues or biases.

Noise Level: 3
Justification: The article provides some relevant information about Delta Airlines lowering its earnings guidance and the impact on airline stocks. However, it lacks in-depth analysis, evidence, and actionable insights. The article also includes unrelated information about other airline stocks and an advertisement, which adds to the noise level.

Financial Relevance: Yes
Financial Markets Impacted: Airline stocks

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the impact of Delta Airlines lowering its earnings guidance on airline stocks. However, there is no mention of an extreme event.

Reported publicly: www.marketwatch.com