Delta Airlines will continue to release positive results when it reports its latest earnings update, according to analysts Cowen & Co.
The airline reported that its second-quarter revenue will be up between 8 and 8.5%, a stark contrast to its counterparts Southwest, American and United who have reported struggles due to the grounding of Boeing 737 Max jets.
The analyst report by Cowen & Co said: “We look for a positive outlook for the remainder of the summer following strong June traffic. A stronger than expected revenue environment produced higher than forecast results.
"As a result, Delta now forecasts 2Q19 EPS in the range of $2.25 to $2.35, at the high end of initial range of $2.05 to $2.35.
“The better outcome is due to better adjusted unit revenue performance. Delta now forecasts 2Q19 adjusted RASM to increase ~3.5% vs initial guidance of up 1.5% to 3.5%.”
The Atlanta-based carrier recently announced that it carried 18.9 million customers across its global network in June 2019 – an all-time monthly record.
The airline has stated that its revenue passenger miles (RPMs) stood at 14.1 million passengers domestically in the US in June 2019, an increase of 8% from the same period last year.
RPMs for international routes was reported of having a 3.4% increase to 8.6 million, Atlantic RPM was posted at 5.06 million, up 4.1% and Pacific RPM’s increased 6.4% to 1.92 million.
However, Latin America RPMs saw a slight dip coming in at 1.63 million, down from 1.69 million in June 2018.
The group’s load factor came in at 90.4%, up from 88.5% – an increase of 1.9 percentage points.
Delta will release its second-quarter financial results on July 11.
Delta set to report positive financial results during Max 737 grounding period
