Financial Report Preview | Delta Air Lines, Inc. (DAL.US)Q4 expected to double profits, Market focus on holiday season performance

Delta Air Lines, Inc. (DAL.US) is expected to announce its fourth quarter performance on January 10th, and investors will closely watch for comments on the impact of the holiday season. The market expects Delta Air Lines, Inc. to report fourth quarter revenue of $14.59 billion, a year-over-year increase of 2.6%; and earnings per share of $1.74, a year-over-year increase of 35.9%. American Airlines Group Inc. may face challenges such as fuel price fluctuations, inflation pressures, and limited aircraft deliveries. Seeking Alpha contributor Vinay Utham stated, "Investors should watch for the impact of the holidays on Delta Air Lines, Inc.'s performance and the latest developments in the lawsuit against CrowdStrike (CRWD.US)." Utham added that Delta Air Lines, Inc. has had mixed results in meeting revenue and earnings expectations in the past, and coupled with recent performance, investors should remain cautious ahead of the earnings report. In October of last year, Delta Air Lines, Inc. filed a lawsuit against CrowdStrike in a Georgia court, citing a outage in July that resulted in Delta Air Lines, Inc.'s computer systems crashing and necessitating the cancellation of about 7,000 flights. Delta Air Lines, Inc. reiterated its performance guidance for 2024, and expects a 3% to 4% year-over-year increase in capacity in 2025, moderate single-digit revenue growth, and low single-digit growth in non-fuel unit costs. Seeking Alpha contributor Leon Laake noted that historically, Delta Air Lines, Inc.'s stock performance in January has been poor, with most January returns being negative, and the stock performing poorly after the fourth quarter earnings report. However, another Seeking Alpha contributor, Motti Sapir, mentioned that Delta Air Lines, Inc. is in a favorable position and can mitigate some concerns. Sapir stated, "There are risks such as rising fuel costs and political issues with GEO Group Inc, but Delta Air Lines, Inc.'s strategic initiatives and efficient operations alleviate these concerns. Positive market sentiment and Delta Air Lines, Inc.'s focus on high-profit services and fleet upgrades indicate significant growth potential, making it a Hershey Company investment now." Delta Air Lines, Inc. did not meet revenue and profit expectations in the third quarter of 2024. In the past two years, Delta Air Lines, Inc. had a 63% probability of exceeding earnings expectations and a 75% probability of exceeding revenue expectations. The company's stock price increased by 49.6% in 2024.