Delta Air Lines (NYSE:DAL) issued its quarterly earnings data on Wednesday. (NYSE:DAL) closed at $43.99 with rises of 0.76% in last trading session after the firm released its Q2 2015 net income of $1.49M, or $1.83 per share, as compared to $801M, or $0.94 per share, a year before.
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As far as company’s financial report for the second quarter (FY15) is concerned, several analysts at Bloomberg have estimated that the revenue of the company will be around $10.63 billion.
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However, this is not a hard deadline as pilots can continue to work under the existing contract past the December deadline. Nonetheless, it should not be forgotten that earnings of Delta Air Lines, Inc. Analysts had hailed the proposed contract as a sign of labor peace, six months ahead of the January start date for new terms.
While the E190 might have created jobs, it came with a lower, “second-tier” pay scale, said Tim Caplinger, who leads a startup union seeking to replace ALPA. Some pilots also were concerned that the jet would replace some of Delta’s older mainline planes, rather than adding to the fleet, he said. Of those seventeen, sixteen have a Buy rating, one has a Hold rating. Delta included the plane purchase as a sweetener.
The capacity pullback unveiled Wednesday responds to analysts’ urgings for slower growth as airlines struggle to charge more. That has caught the attention of the U.S. Justice Department, which is investigating whether the airlines are illegally working together to prop up prices by limiting the number of flights – and signaling those moves to each other in advance. Investigators have asked the airlines for information about their discussions about capacity with each other, with Wall Street analysts, and with big investors. This is an important indicator as a higher ratio typically suggests that investors are expecting higher future earnings growth compared to companies in the same industry with lower price to earnings ratios. Analysts at Goldman Sachs reiterated a “buy” rating and set a $60.00 price target on shares of Delta Air Lines in a research note on Friday, July 3rd.
Total operating expenses, including special items, declined 9% year over year to $8,233 million.
Delta saw solid progress with several of its revenue initiatives, including Branded Fares, which increased passenger revenues by USD56 million, and its enhanced agreement with American Express, which produced an incremental USD60 million in revenue.
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Delta shares have fallen 11 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed slightly more than 2 percent.
