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Delta Air Lines, Inc. (DAL) - free report >>
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Delta Air Lines, Inc. (DAL) - free report >>
Copa Holdings, S.A. (CPA) - free report >>
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Delta's (DAL) Ticket Sales Improve, Trans-Atlantic Demand Rises
Per a Reuters report, Delta Air Lines (DAL - Free Report) management has said that the airline’s ticket sales have stabilized and began to improve. This follows a drop in bookings due to a spike in coronavirus cases induced by the Delta variant.
The carrier now expects third-quarter 2021 revenues to fall within its initial guidance of a decline of 30-35% from the comparable period in 2019, per the report. Due to rising coronavirus cases, Delta previously estimated total adjusted revenues to be in the lower end of the guided range. The airline is scheduled to release third-quarter results on Oct 13.
Per the report, chief executive officer, ED Bastian, told reporters on the sidelines of a meeting of airlines group IATA, "For Delta, they bottomed out in the later part of August and the first part of September.” Bastian further added, "Business traffic is growing back in the U.S." Business travel demand has been rather slow to recover compared with leisure travel demand.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote
Bastian also said that domestic travel bookings are likely to surpass 2019 levels next year. To cater to this anticipated recovery in demand, the airline expects to boost capacity by more than 20% next summer over the 2019 peak by increasing service from Boston, MA.
On a further positive note, the carrier has been seeing a surge in demand for trans-Atlantic flights following the U.S. government’s decision last month to ease travel restrictions for visitors from foreign countries, the Reuters report stated.
Zacks Rank & Key Picks
Delta carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Copa Holdings (CPA - Free Report) , ArcBest Corporation (ARCB - Free Report) and Herc Holdings (HRI - Free Report) . While ArcBest and Herc Holdings sport a Zacks Rank #1 (Strong Buy), Copa Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Copa Holdings, ArcBest and Herc Holdings have rallied more than 70%, 100% and 200% in a year’s time, respectively.