Airline Stock Roundup: DAL & UAL's Q3 Earnings Reports, CPA's Traffic
In the past week, United Airlines UAL reported better-than-expected earnings per share and revenues for the third quarter of 2024. This Chicago-based company announced a $1.5 billion share buyback plan, highlighting its pro-shareholder approach. Delta Air Lines DAL reported mixed third-quarter results, with earnings lagging the Zacks Consensus Estimate but revenues surpassing the same.
Southwest Airlines’ LUV tussle with Elliott Investment Management took another turn with the latter calling an emergency meeting in December in a bid to get Elliott’s nominees appointed to LUV’s board. Copa Holdings CPA reported an increase in traffic and capacity for the month of September.
Read the Last Airline Roundup here
Recap of the Recent Most Important Stories
1. United Airlines reported third-quarter 2024 earnings per share (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings, however, decreased 8.8% on a year-over-year basis. Operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. For the fourth quarter of 2024, UAL expects adjusted EPS in the range of $2.50-$3.00.
UAL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
2. Delta reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis, mainly due to high labor costs. Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Delta expects fourth-quarter 2024 adjusted earnings to be in the band of $1.60-$1.85 per share.
3. Riding on the buoyant air travel demand scenario, total traffic (measured by revenue passenger miles) at Copa Holdings increased 7.3% year over year in September. Capacity (measured by available seat miles) increased 9.1%, highlighting the rosy scenario with respect to operational expansion. CPA's September load factor (% of seats filled with passengers) was a solid 85.9%, reflecting operational efficiency in managing increased capacity while sustaining passenger loads.
4. Elliott Investment Management called for a special meeting of LUV’s shareholders on Dec. 10, 2024. Elliott intends to replace eight existing directors on LUV’s board with candidates of its choice. LUV believes that Elliott's request for a special meeting is unnecessary and inappropriate.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The NYSE ARCA Airline Index increased 7.9% to $63.55, as most stocks in the table above traded in the green. Over the past six months, the NYSE ARCA Airline Index has increased by 3.7%.
What’s Next in the Airline Space?
Quite a few airline companies are scheduled to report third-quarter 2024 earnings in the coming days. For example, Southwest Airlines is scheduled to report results on Oct. 24. LUV’s results are expected to be aided by high passenger volumes and low fuel costs. Further updates on LUV’s dispute with Elliott Investment Management are likely in the coming days.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report