American Airlines forecast 2026 profit above analysts' expectations on Tuesday, buoyed by a recovery in corporate travel and strong demand for high-margin premium services. ...

Core Insights - Delta Air Lines has experienced a notable increase in technical strength following its fourth-quarter earnings report, with its momentum ranking rising from the 50th to the 73rd percentile week-over-week [1][2]. Technical Strength - Despite a slight decline in share price post-earnings, Delta's technical indicators have improved relative to its peers, with the momentum score increasing from 50.73 to 73.36, indicating stronger price movement patterns and volatility [2]. - The stock maintains positive ratings across short, medium, and long-term trends, suggesting sustained upward pressure over recent months and the past year [3]. Premiumization Strategy - Delta's "premiumization" strategy is a key driver of its positive outlook, with revenue from premium products increasing by 9% year-over-year, while main-cabin ticket revenue fell by 7% [4]. - High-margin, diversified revenue streams now constitute 60% of Delta's total revenue, supporting a Value ranking of 64.80, which compares market price to fundamental assets and earnings [4]. Financial Performance - Delta reported adjusted earnings of $1.55 per share, surpassing Wall Street estimates of $1.53 [5]. - For 2026, Delta forecasts earnings per share (EPS) between $6.50 and $7.50, exceeding the consensus estimate of $7.22, driven by accelerating top-line growth and strong consumer demand [5]. Stock Performance - Delta's shares have increased by 1.98% in 2026 thus far, with a notable rise of 25.68% over the last six months and a 3.06% increase over the past year [6].

Core Viewpoint - Delta Air Lines reported mixed fourth-quarter results, exceeding profit expectations but missing revenue forecasts, leading to a decline in share price by approximately 3% intraday Financial Performance - Adjusted earnings for the December quarter were $1.55 per share, slightly above the consensus estimate of $1.52 [2] - Total revenue for the quarter was $14.61 billion, falling short of analysts' expectations of $14.72 billion [2] - Revenue growth was impacted by approximately two percentage points due to the government shutdown, which primarily affected domestic travel demand [2] - Quarterly revenue increased by 1.2% year over year, supported by a capacity growth of 1.3% [3] - For the full year 2025, Delta achieved record revenue of $58.3 billion, a 2.3% increase from 2024 [3] - Revenue from diversified streams, including premium services, cargo, and maintenance operations, rose by 7% year over year, accounting for 60% of total revenue [3] Future Guidance - Delta forecasts first-quarter 2026 revenue growth of 5% to 7% year over year, with operating margins expected between 4.5% and 6% [4] - Projected first-quarter earnings per share are estimated to be between $0.50 and $0.90, compared to consensus expectations of $0.72 [4] - For the full year 2026, Delta anticipates earnings of $6.50 to $7.50 per share, indicating approximately 20% growth at the midpoint from 2025 levels, but below the Street consensus of $7.32 [4] Strategic Developments - Delta announced a new agreement with Boeing to purchase 30 Boeing 787-10 widebody aircraft, with options for an additional 30 planes, with deliveries scheduled to begin in 2031 [5]

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We're back on Morning Trade Live. It's the [music] most wonderful time of the year. It's also one of the busiest times of the year for airlines.The FAA anticipating the busiest [music] Thanksgiving travel period in 15 years. And now the focus moves to late December. The Jets ETF is near three-year highs [music] and is up nearly 60% from its April low.So, let's go inside out on [music] airlines this morning. Joining us now is Jarrett Bilis, airlines managing director, S&P Global Ratings. Thanks so much for j ...