The corporate reporting period has is starting.
Last week, 8 companies from the S&P 500 index reported.
Today, we will consider the results of Delta Air Lines. Its revenue amounted to $16.6B. It grew by +2.0% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by +7.8%. Let’s analyze the company’s business in more detail.
Delta Air Lines is the world’s largest airline with a network of over 300 destinations in more than 50 countries. Delta operates on the hub-and-spoke principle, where it collects and distributes passengers around the world through its largest hubs in Atlanta, New York, Salt Lake City, and Detroit.
The company’s revenues increased by +7.0% quarter-on-quarter and by +21.1% month-on-month. The company started to introduce special offers for the business segment, which increased demand among corporate clients. The company also maintains customer loyalty, allowing customers to redeem bonus miles for 5 classes of passenger transportation.
Production costs account for 82% of the revenue structure, and gross revenue for 18%. Over the past quarter, the company earned a profit of $1.3B. And its market capitalization is $28B.
After the publication of the report, Delta Air Lines shares fell by -3.1% to $43 per share. Despite the positive performance, market participants were dissatisfied with the financial results and reacted negatively to the company’s development prospects.
*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter
