The earnings rush has begun, as companies large and small begin to reveal their first quarter performances.
Delta Airlines reported a net income $730 million for the March quarter. The airline is quick to boast its adjusted earnings per share $.96 citing a jump of 28% from year to year. It’s giving a lot of credit to the renewal of its agreement with American Express.
Other airlines will unveil their first quarter earnings in the next few days: United Airlines, April 17; Southwest Airlines, April 25; American Airlines, April 26.
The outlook and guidance provided by United Airlines, American Airlines and Southwest Airlines will be critical as these carriers fly the Boeing 737MAX. The narrow-bodied aircraft has been grounded as federal investigators and Boeing review the aircraft’s design and software in the wake of two fatal crashes. Many flight schedules have been rearranged due to the aircraft’s unavailability to fly. The disruption comes as the carriers enter the busy summer travel season.
Meantime, United Airlines continues plans to expand on the long-haul sector. United will debut nonstop service from Newark to Cape town, South Africa. Flights will operate three times a week, with an expected debut of December 2019. The flights will be operated using a Boeing 787.
The 787 has been credited with allowing carriers such as United to fly long distances at a lower cost and without the pressures of using a larger aircraft.