Key Takeaways DAL posted Q2 EPS of $2.10, beating estimates despite an 11% drop from last year due to labor costs. Revenues hit $16.64B, above expectations, with adjusted operating revenues up 1% year over year. DAL reinstated 2025 EPS guidance of $5.25-$6.25 and sees free cash flow of $3-$4 billion for the year.Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decr ...

Airline Industry Performance - Delta Air Lines Inc. experienced a 12% surge in stock price after reporting second-quarter results that exceeded both earnings and revenue expectations, indicating a strong demand outlook [1] - American Airlines Group Inc. shares increased by 12.5%, while United Airlines Holdings Inc. saw a 13.5% rise, contributing to a broad rally across the airline sector [2] - The U.S. Global Jets ETF, which tracks airline stocks, rose by 7.2%, marking its best performance since the 90-day tariff pause in April [2] Economic Indicators - The U.S. labor market showed resilience with initial jobless claims dropping to 237,000, surpassing forecasts, although continuing claims rose to 1.965 million, the highest since 2021 [6] Commodity Market Reactions - Copper futures increased by 2.2% to approximately $5.60 per pound, with silver and palladium also seeing gains of 1.6% and 3.6% respectively, driven by expectations of tightening supply [5] - Crude oil prices fell over 2% amid reports that OPEC+ is considering halting planned production increases starting in October, raising concerns about potential oversupply [5] Stock Market Overview - Major indices showed mixed performance, with the Russell 2000 up 0.7%, Dow Jones up 0.6%, and S&P 500 up 0.2%, while Nasdaq 100 slipped by 0.3% [7] - The Vanguard S&P 500 ETF inched up 0.2%, while the SPDR Dow Jones Industrial Average rose by 0.6% [9] Company-Specific Movements - Norwegian Cruise Line Holdings Ltd. rose over 4% after NorthCoast Research raised its price target, reiterating a 'Buy' rating [10] - Freeport-McMoRan Inc. climbed 3.3% as copper prices continued to rise amid supply concerns [10] - Nu Holdings Ltd. dropped 5.1% following the announcement of a 50% tariff on Brazilian imports, leading to a selloff in Brazil-linked assets [10]

Core Insights - United Airlines Holdings, Inc. (UAL) is set to report its second-quarter 2025 results on July 16, with a history of positive earnings surprises, averaging a beat of 10.34% over the last four quarters [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for UAL's Q2 2025 earnings has been revised down by 1.57% to $3.75 per share, indicating a 9.42% decrease from the previous year's actual earnings [3][5]. - UAL's revenue for Q2 2025 is estimated at $15.31 billion, reflecting a 2.17% year-over-year growth, supported by improving travel demand and lower fuel prices [7]. Cost and Economic Factors - UAL is expected to face challenges from a tariff-induced macroeconomic environment, with geopolitical uncertainties and inflation likely impacting travel demand [4][6]. - Labor costs are projected to rise, contributing to an 8.8% increase in operating costs compared to Q2 2024, driven by a 10.5% rise in salaries and related expenses [6]. Oil Prices and Industry Impact - The decline in oil prices, which fell 6% in the April-June 2025 period and 9% since the start of 2025, is seen as beneficial for the aviation industry, as fuel expenses are a significant cost factor [8]. Earnings Prediction Model - The current model indicates a potential earnings beat for UAL, with an Earnings ESP of +3.43% and a Zacks Rank of 3, suggesting a favorable outlook for the upcoming earnings report [9].

Delta Shares Leap 12% On Profit Forecast That’s Down From Januaryhttps://t.co/3YpL7OBJ39 https://t.co/dntfIZ5JIM ...

Group 1 - Delta Air Lines provided a strong outlook for the second half of the year, positively impacting the entire airline sector, with Southwest Airlines shares rising by 7% [1][4] - Demand trends in the airline industry appear robust, with Delta exceeding Wall Street estimates and reinstating full-year guidance, indicating strong demand despite macroeconomic challenges [3] - Investor sentiment in the airline sector improved following Delta's report, leading to increased optimism about upcoming earnings from other carriers [4] Group 2 - Despite Delta's positive results, investors in Southwest Airlines should exercise caution due to the company's ongoing transformation, which includes the elimination of perks like no bag fees, potentially leading to consumer backlash [5] - Delta's overall demand was strong, but the main cabin traffic was weaker compared to premium and business segments, which could pose challenges for Southwest, known for its no-frills travel model [6] - Investors in Southwest Airlines are advised to wait for specific insights from management before making investment decisions [6]

Economic Indicators - Initial Jobless Claims decreased for the fourth consecutive week to 227K, down from a near-term high of 250K four weeks ago, marking the lowest level since May 17th [2] - Continuing Claims increased to 1.965 million from a revised 1.955 million, the highest since November 2021, with four of the last five weeks above 1.95 million [3][4] Company Earnings - Delta Air Lines (DAL) reported Q2 earnings of $2.10 per share, beating expectations by 9 cents, although down from $2.36 per share a year ago, with revenues of $16.6 billion, slightly above the expected $16.01 billion [5][6] - Delta raised its earnings guidance for Q3 to a range of $1.25-1.75 per share and for the full fiscal year to $5.25-6.25 per share, exceeding analysts' projections [6] - Conagra (CAG) missed fiscal Q4 earnings expectations, reporting 56 cents per share versus the expected 59 cents, with revenues of $2.78 billion below the anticipated $2.84 billion, leading to an 8% drop in shares [7]

So are you seeing kind of similar tailwinds for luxury demand that Phil was outlining with regard to Delta. Yes. Um 2025 started very strong for us first quarter uh which led us believe that the year would be one of the best year of the airline uh since its creation 2014.Um the second quarter uh turned out to be a bit different. Um I started with the um announcement on the potential tariff consequences and obviously tariff are um generating constraints and uncertainty for business organizations and uh for t ...

Thursday, July 10, 2025Pre-market futures are flat this morning, again without much direction from outside influences. We’ve passed the 90-day tariff “deadline” with no ramifications; in fact, major indexes were up across the board, from a half of one percent to +1%. Currently, the Dow is -33 points, the S&P 500 is 0.0, the Nasdaq +13 points and the small-cap Russell 2000 +3.Jobless Claims Moderate on Initial Side: 227KWelcome news this Thursday morning are Weekly Jobless Claims levels, where Initial Jobles ...

count. >> Welcome back. Airlines in rally mode today the U.S. Global Jets ETF moving higher.But the group is still down for the year. Delta's leading that space this morning after posting a beat on quarterly results and reinstating their 2025 profit outlook. Earnings call is now underway.Stock's up almost 13% Phil LeBeau talked to Ed Bastian this morning and joins us with more. Hey Phil. >> And Carl.What we will expect on that call are a number of questions about what's going to happen to capacity after the ...

Financial Data and Key Metrics Changes - The company reported a pretax income of $1.8 billion, with earnings of $2.1 per share, and achieved record quarterly revenue of $15.5 billion, reflecting a year-over-year increase of approximately 1% [7][17] - The operating margin was 13.2%, and free cash flow generated during the quarter was $700 million, bringing the year-to-date total to $2 billion [7][27] - Non-fuel unit cost growth was 2.7%, consistent with previous quarters, indicating effective cost management despite operational challenges [27][30] Business Line Data and Key Metrics Changes - Premium revenue grew by 5% year-over-year, while loyalty revenue increased by 8%, demonstrating strong customer engagement, particularly among millennial and Gen Z segments [19][20] - Revenue from Delta's travel products portfolio grew by 8%, with significant growth in cars, stays, and cruise products [21] - Cargo revenue increased by 7% year-over-year, and MRO revenue accelerated to 29% growth, reflecting higher volumes and work scopes [21][22] Market Data and Key Metrics Changes - Overall demand for air travel remained stable compared to the previous year, with softness primarily in the main cabin during off-peak periods [9][10] - The company noted that corporate revenue improved modestly year-over-year, with premium products showing sustained strength [21][22] - The company expects revenue growth for September to be flat to up 4% year-over-year, indicating stable demand across consumer and corporate segments [22][30] Company Strategy and Development Direction - The company is focused on managing capacity to match demand and controlling costs to deliver strong earnings and free cash flow [11][12] - Strategic investments are being made to enhance the travel experience, expand customer choice, and deepen loyalty to the Delta brand [24][25] - The company is also investing in technology to optimize revenue through AI-enhanced pricing solutions and improving operational efficiency [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to restore financial guidance for the full year, expecting earnings per share of $5.25 to $6.25 and free cash flow of $3 billion to $4 billion [12][30] - The management highlighted a stable demand environment and anticipated improvements in unit revenue trends as the industry rationalizes domestic supply [23][30] - There is optimism regarding the recovery of business travel, with indications that consumer confidence is improving [46][68] Other Important Information - The company announced a 25% increase in its quarterly dividend, reflecting strong cash generation and commitment to returning cash to shareholders [7][30] - The company has a fully funded pension and significant unencumbered assets, which supports its investment-grade rating [29][105] Q&A Session Summary Question: Can you elaborate on industry capacity in 3Q and 4Q? - Management noted a significant reduction in industry capacity, particularly in off-peak periods, which is expected to support profitability [35][36] Question: How is the cabin segmentation being received? - Management indicated that there is strong demand for premium cabins, and they are focused on providing more choices and pricing options [37][41] Question: What are the trends in corporate demand? - Management reported that corporate spending is expected to remain stable or increase, with favorable sectors including banking and technology [62] Question: How is the booking curve shifting? - Management acknowledged that the booking curve has shifted closer in, but there are signs of improvement as consumer confidence returns [108][110] Question: What is the outlook for MRO revenue? - Management expressed optimism about MRO revenue growth, indicating potential for significant increases in the coming years [100][99]