Delta Air Lines, Inc. (DAL.US) launches a preemptive strike before the financial report! Soaring oil prices may force the aviation industry giant to retract its performance guidance.

Note that Delta Air Lines, Inc. (DAL.US) will kick off the highly anticipated earnings season for the aviation sector on Wednesday. In addition to the significant weather events in January and February, the recent surge in aviation fuel prices will also have investors closely watching for updates on Delta Air Lines, Inc.'s performance guidance. Prior to Delta Air Lines, Inc. releasing its earnings, Morgan Stanley lowered various data points for the industry. The firm predicts that the entire aviation sector may completely retract its 2026 fiscal year performance guidance, or more likely, update it to a larger range based on fuel price assumptions. The aviation industry showed strong demand trends in the fourth quarter, which continued into the mid-quarter performance update in March. Analyst Ravi Shankar pointed out that while the resilience of summer demand will be key, capacity cuts seem relatively inevitable given the low demand, especially in the third quarter. As for aviation fuel costs, although the short-term trajectory remains uncertain, pricing assumptions and the latest fuel supply situation are expected to be key. For Delta Air Lines, Inc., the company's early earnings reports typically set the tone for the entire industry, but Jefferies Financial Group Inc. believes this trend will be more pronounced this quarter. Investors will be watching to see if Delta Air Lines, Inc. can maintain its recent streak of surpassing earnings expectations while dealing with higher fuel and labor costs. For the first quarter, the market expects Delta Air Lines, Inc. to report revenue of $14.94 billion and earnings per share (EPS) of $0.58. During the earnings conference call, Delta Air Lines, Inc. may emphasize its advantage in managing fuel costs, as the company owns the Trainer refinery. In terms of performance guidance, Delta Air Lines, Inc. management had previously forecasted a 5% to 7% increase in annual revenue and approximately 20% growth in profit, so any changes in summer booking volumes, business travel, or free cash flow outlook will be crucial for the stock price. Options trading implies that after the first quarter earnings announcement, Delta Air Lines, Inc.'s stock price volatility could reach 7%.