STREAMING NOW: Watch Now

Delta issues another warning on earnings

Delta Air Lines says the next three months could be bumpy.On Tuesday, the company forecast earnings p...

Posted: Jan 15, 2019 9:45 PM
Updated: Jan 15, 2019 9:45 PM

Delta Air Lines says the next three months could be bumpy.

On Tuesday, the company forecast earnings per share of 70 cents to 90 cents, far below Wall Street estimates. A year ago Delta earned 74 cents a share in the fourth quarter. Delta also said a key measure of revenue from fares is likely to be flat.

Air transportation

Airlines

Banking, finance and investments

Business and industry sectors

Business, economy and trade

Companies

Company activities and management

Company earnings

Delta Air Lines Inc

Financial markets and investing

Financial performance and reports

Financial results

Securities trading

Stock markets

Transportation and warehousing

Business figures

Ed Bastian

The government shutdown is among the issues Delta faces, CEO Ed Bastian told analysts.

He estimated that the airline is losing about $25 million in the month of January because of fewer bookings. That equates to about a 1% drop in expected revenue.

Bastian said Delta is also concerned about longer security lines because some TSA screeners who aren't being paid and are calling off sick. Bastian said Delta is talking with TSA and having its employees do some of the non-essential screening work that they're allowed to provide in an effort to limit the lines.

But Delta said the long lines have been sporadic and not spread evenly across all airports. And Bastian said he's not seeing any drop in bookings from customers who don't want to deal with the lines.

"We're not seeing any evidence that people are looking at this extended shutdown as anything other than something that's going to be resolved hopefully soon," he said. Bookings for the upcoming Martin Luther King holiday weekend and the President's Day weekend next month are strong.

The airline also expects that it will see a delay in FAA approval for its Airbus 220. The FAA is one of the agencies seeing non-essential personnel furloughed during the shutdown. The smaller plane that is replacing some regional jets had been expected to begin service as soon as January 31.

"The start date is likely to be pushed back due to delays in the certification process," said Bastian. "This is also hampering our ability to put seven other new aircraft deliveries into service. We strongly encourage our elected officials to do their very best to resolve their differences and get our government fully open as quickly."

The shutdown started on December 22 and is now longest on record. About 800,000 government employees have been furloughed without pay.

Shares of Delta (DAL) fell as much as 1.6% in premarket trading before rebounding and finishing slightly higher.

The guidance also shook some of its competitors. American (AAL) fell 1% before closing higher. Shares of United Continental Holdings, (UAL) were also down slightly before the bell, but the airline on Tuesday reported that fourth quarter profit had exceeded expectations. Stock closed up 1.6% and was up as much as 6% after the earnings report.

Earlier this month a warning from Delta that business travel was a bit softer than expected at the end of the fourth quarter was enough to send airline stocks sharply lower.

But Delta's fourth quarter results ended up not being all that bad.

Earnings were a few cents a share better than estimates, and overall revenue for the quarter fell in line with forecasts.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 36680

Reported Deaths: 1250
CountyConfirmedDeaths
Hinds299254
DeSoto195920
Madison148439
Jones122449
Harrison117716
Rankin112619
Neshoba104677
Forrest103843
Lauderdale96681
Scott82415
Jackson79819
Washington73713
Copiah67016
Leake63420
Lee62822
Oktibbeha61928
Grenada6049
Warren60021
Holmes59541
Lamar5837
Wayne56519
Yazoo5607
Lowndes54817
Leflore53456
Lincoln53335
Lafayette5064
Pike50520
Sunflower5048
Monroe46135
Panola4546
Covington4465
Simpson4433
Bolivar41218
Tate39213
Attala38624
Newton37610
Adams35820
Pontotoc3556
Marion34512
Claiborne30811
Pearl River30332
Winston30111
Chickasaw30019
Marshall2923
Jasper2816
Noxubee2799
Walthall2708
Clay26111
Union25412
Smith25212
Coahoma2306
Clarke22325
Lawrence2132
Yalobusha2089
Tallahatchie1954
Kemper18414
Carroll18211
Montgomery1793
Calhoun1705
Humphreys16910
Hancock14813
Itawamba1478
Tippah14611
Webster13411
Jefferson1283
Prentiss1274
Jefferson Davis1254
Tunica1253
George1233
Greene11610
Amite1123
Alcorn1072
Tishomingo1061
Quitman1011
Wilkinson989
Perry914
Stone772
Choctaw764
Franklin542
Sharkey480
Benton470
Issaquena101
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 54768

Reported Deaths: 1096
CountyConfirmedDeaths
Jefferson6746170
Mobile4904140
Montgomery4547112
Tuscaloosa269053
Madison22689
Marshall198011
Shelby169125
Lee159637
Morgan13385
Baldwin127711
Walker107532
Elmore106721
Etowah101114
Dallas10029
DeKalb9677
Franklin93816
Autauga69815
Russell6860
Unassigned67928
Chambers67730
Butler65229
Limestone6393
Tallapoosa63069
Cullman6156
Houston6077
Lauderdale5776
St. Clair5443
Calhoun5155
Colbert5096
Escambia4888
Lowndes48422
Pike4795
Jackson4352
Coffee4284
Covington41612
Talladega4017
Barbour3992
Dale3951
Bullock37810
Hale35423
Marengo35411
Chilton3312
Blount3201
Clarke3176
Wilcox3038
Winston2995
Sumter29213
Marion29014
Pickens2746
Randolph2639
Monroe2603
Perry2502
Conecuh2318
Bibb2241
Macon2199
Choctaw21712
Greene1989
Henry1553
Washington1488
Lawrence1360
Crenshaw1323
Cherokee1247
Geneva980
Lamar891
Clay852
Fayette851
Coosa661
Cleburne451
Out of AL00
Tupelo
Clear
73° wxIcon
Hi: 94° Lo: 73°
Feels Like: 73°
Columbus
Overcast
73° wxIcon
Hi: 94° Lo: 73°
Feels Like: 73°
Oxford
Clear
68° wxIcon
Hi: 93° Lo: 72°
Feels Like: 68°
Starkville
Scattered Clouds
68° wxIcon
Hi: 91° Lo: 71°
Feels Like: 68°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather