Delta Air Lines Shares Drop 8% Following Q2 Revenue Miss

Delta Air Lines (NYSE:DAL) saw its share price drop by around 10% intra-day today after revealing Q2 results that showed a revenue shortfall, despite meeting analyst expectations for EPS.

The airline reported an adjusted EPS of $2.36, which aligned with consensus estimates. However, revenue for the quarter was slightly below expectations at $15.4 billion, compared to the anticipated $15.47 billion.

Even with the revenue miss, Delta highlighted a record June quarter revenue, marking a 5.4% increase from the same period in 2023. The company's operating margin was strong at 14.7%, and it generated robust cash flow, enabling continued debt repayment and a notable 50% increase in its dividend payment starting in the September quarter.

CEO Ed Bastian expressed confidence in Delta's ability to meet its full-year guidance, projecting an EPS of $6 to $7 and free cash flow of $3 to $4 billion.

Despite these positive indicators, the revenue shortfall led to a significant decline in the stock price. For the September quarter, Delta anticipates a pre-tax profit of around $1.5 billion and a double-digit operating margin.

Delta's full-year 2024 guidance remains steady, with an EPS forecast of $6 to $7, against the analyst consensus midpoint of $6.58.