US airlines recovery continues, boosted by robust air-travel demand

In recent weeks, the airline giants reported strong earnings for the last quarter as the global travel market continues to show positive signs of recovery from losses incurred because of the Coronavirus pandemic. However, there is still some weakness in the recovery of the airline sector, particularly high-fuel costs and inflation were the two biggest issues facing the aviation sector as it emerges from the COVID-19 pandemic.

Airline stocks post-earnings analysis

Let’s check out the last quarter’s financial results from the top 3 U.S. carriers Delta Air Lines (DAL), United Airlines (UAL) and American Airlines (AAL).

Atlanta-based Delta Airlines (NYSE: DAL) kicked off the third-quarter US airlines earnings on Oct. 13. The airline missed on earnings views but posted record revenue and upbeat forecasts. The airline forecast that revenue during the final three months of the year will top pre-pandemic levels.

  • Earnings per share: $1.51 vs. $1.53 expected

“Global demand is continuing to ramp as consumers shift spend to experiences, businesses return to travel and international markets continue to reopen,” Delta CEO, Ed Bastian said.

The Chicago-based legacy carrier United Airlines (NASDAQ: UAL) reported stronger-than-expected Q3 2022 earnings results last week. The airline recorded operating revenues of $12.9 billion and United also raised profit estimates for the final quarter of the year.

  • Earnings per share: $2.81 vs. $2.29 expected

“Despite growing concerns about an economic slowdown, the ongoing Covid recovery trends at United continue to prevail and we remain optimistic that we’ll continue to deliver strong financial results in the fourth quarter, 2023 and beyond.” United Airlines CEO Scott Kirby said.

The world’s largest airline by passenger capacity American Airlines (NASDAQ: AAL) reported its third-quarter 2022 financial results last Thursday. The airline reported record quarterly revenue of $13.5 billion in the third quarter and the net income was $483 million. The airline expects its fourth-quarter total revenue to be 11–13 percent higher versus the fourth quarter of 2019.

  • Earnings per share: $0.69 vs. $0.54 expected

“Demand remains strong and it’s clear that customers in the U.S. and other parts of the world continue to value air travel and the ability to reconnect post-pandemic,” American Airlines CEO Robert Isom said.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Syam KP | Gulf Brokers

A financial investment professional with over 9 years of FX and capital market industry. Chief analyst at Gulf Brokers https://gulfbrokers.com/en/research/blog