On Thursday, Delta Airlines reported quarterly loss that was steeper than analysts’ anticipated.

The airline reported an adjusted loss of -$3.55 for the first quarter, versus -$3.17 a share loss expected by analysts polled by Refinitiv.

Revenue of $4.15 billion, however came in higher than the  $3.91 billion expected by analysts.

The company expects to break even in June, with rebound in travel following COVID19-induced slump.It said that domestic leisure bookings recovered to about 85% of 2019 levels; but international and business travel remain affected.

For its second quarter, Delta predicts that revenue will be 50% to 55% lower than the same period of 2019, on scheduled capacity that’s a third lower than two years ago.

It raised Alaska Air shares to overweight from equal weight.

Morgan Stanley initiated coverage of American Airlines  with an  underweight rating.

“We reiterate our attractive view on the U.S. airlines, despite the stocks [rising] 85% in the last five months,” wrote Morgan Stanley analyst Ravi Shanker.The analyst cited an expected  “ clear path to re-opening” as he mentioned that  consensus figures are too low given Morgan Stanley’s  view of strong volume and cost tailwinds.

Delta said that starting May 1 it would allow passengers to sit in the middle seats in its planes. The carrier is the last U.S. airline to lift the middle-seat restriction, which was put in place last April due to the COVID-19 pandemic. It is easing the restriction on increased vaccinations and growing demand for travel. Delta Air Chief Executive Ed Bastian said that 65% of customers who flew...

American Airlines reported earnings last week, and to no one's surprise, it lost a ton of money -- $2.2 billion for the quarter, to be exact. This marked a negative earnings-per-share (EPS) of -$3.86 for the quarter, losses not unlike those being felt across the airline industry. But the stock soared on the news. There may be two reasons for this: Forecasts for American's earnings were to...

Delta Airlines posted substantial loss for the last quarter of 2020, amid coronavirus pandemic.

The air carrier’s adjusted loss of -$2.53 per share was even steeper than the -$2.49 expected by consensus compiled by Bloomberg.Operating revenue plunged -69% year-over-year $3.5 billion, vs.  $3.58 billion expected by analysts.

The company lost -$755 million in net income during the quarter.

After former Vice President Biden was predicted the winner of the U.S. presidential election on Saturday morning, stock futures opened higher on Sunday evening.This news sent markets soaring higher all over the globe and U.S. index futures jumped anywhere from 4% to 7% on the Russell. Once the market opened we saw huge moves from certain industries and sectors.

American Airlines announced a secondary public offering of 38.5 million shares. Bank of America is the sole underwriter for the offering, and will have a 30-day option to purchase up to 5.775 million additional shares. This follows the air carrier’s announcement three weeks ago, where it mentioned that  that it will be selling, from time to time, shares of its common stock with an aggregate gross sales price of up to $1 billion.As of Nov. 9, the company had sold 57.86 billion shares of its common stock for a gross sales worth $702 million. 

However, the airline is has tapered its cash-burn rate. The airline’s third-quarter loss came in at -$1.2 billion, or -$1.96 a share, vs. income of $659 million, or $1.23 a share, in the same period a year ago.Analysts polled by FactSet had been expecting a loss of -$2.35 a share. The quarterly operating revenue was $1.8 billion, down -68% year-over-year. As of third quarter-end, Southwest had  liquidity of $15.6 billion, consisting of cash and short-term investments of $14.6 billion and a secured revolving credit facility of $1 billion. The airline’s cash-burn rate, ( measures how much cash an airline is using to continue operations despite losses), was around $16 million per day in the third quarter, an improvement from average core cash burn of approximately $23 million per day in the second quarter.

According to the  analyst,  Southwest shares have been historically  less volatile compared to  the industry. "We now expect traffic for the carriers in our coverage universe to recover to 2019 levels in 2023 as opposed to 2022," she said. "However, while we are taking the view that demand recovery will be slower than we were previously expecting, we continue to believe that demand for air travel will return to pre-Covid-19 levels and ultimately continue to grow from there." According to Tickeron, LUV enters a Downtrend because Momentum Indicator dropped below the 0 level on June 26, 2020 This indicator signals that LUV's price has further to drop, since it moved below its price 14 days ago.

Delta Air Lines  plans to continue adding flights through the summer. The airline company is expecting to add about 1,000 flights a day in both July and August, as mentioned by CEO Ed Bastian on a shareholder call Thursday, (reported by CNBC). Domestic capacity in August would still be 55% to 60% of typical totals, Bastian said. Following the additions  Delta plans to pause and assess  how demand looks post-Labor Day before deciding to add further domestic flights, as indicated by Bastian. DAL's 10-day Moving Average moved above its 50-day Moving Average on June 01, 2020 This price move may be construed as a buy signal, indicating that the trend is shifting higher.In 15 of 20 cases where DAL's 10-day Moving Average crossed above its 50-day Moving Average, its price rose further within the subsequent month.

On Wednesday, Delta Air Lines  mentioned in a regulatory filing that is anticipating second-quarter revenue to decline -90% year-over-year, on the effect of the covid-19 crisis. The airline also mentioned in the filing that is expecting  systemwide capacity to be down -85%, compared to the June 2019 quarter. The company expects to reduce its average daily cash outflow to about $40 million by June 30,  from about $100 million at March 31.The odds of a continued Uptrend are 65%. Fundamental Analysis (Ratings) Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 62%.

American flew just 20% in May. “Our July schedule includes the smallest year-over-year capacity reduction since March", said Vasu Raja, senior vice president of network strategy.Raja mentioned “a slow but steady rise in domestic demand”. Last week, American Airlines said it planned to cut its management and support staff by about -30%. AAL in +6.66% Uptrend, growing for three consecutive days on June 03, 2020 As a Bullish sign, keep an eye on this company's ticker for future growth.

United Airlines  reported a decline in customer cancellations and a rise in demand for the rest of the second quarter. The air carrier’s gross bookings fell more than -95% from a year ago in April, according to its filing with the Securities and Exchange Commission. While customer cancellation rates touched record highs in April, United mentioned that as of May 18, the company has seen a reduction in customer cancellation rates and a “moderate improvement” in demand for domestic and some international routes for the remainder of the second quarter. “The company plans to continue to proactively evaluate and cancel flights on a rolling 60-day basis until it sees signs of a recovery in demand,” United stated.

Southwest Airlines  reported improved demand and load factor in May - according to a regulatory filing. The airline mentioned, in a Securities and Exchange Commission filing, that its operating revenue for April declined 90% to 95% and load factor was about 8% due to the COVID-19 pandemic’s impact on air travel. However, the company said it experienced "modest improvement" in passenger demand, bookings and trip cancellations in May, leading to net positive bookings through May 18. Southwest expects May operating revenue to fall 85% to 90% and estimates load factor to be 25% to 30%, compared with previous outlook for a 90%-to-95% decline in operating revenue and load factor of 5% to 10%. Southwest continues to expect its average daily core cash spending to be in the range of $30 million to $35 million in the second quarter of 2020.For June, it projects its daily cash burn rate to be “in the low-$20 million range.”

United Airlines got a rating upgrade from an Evercore ISI analyst. Analyst Duane Pfennigwerth raised rating on the airline stock to outperform from in-line.Pfennigwerth also boosted his price target for the shares to $125, from $105. Pfennigwerth cited United shares’ "significant valuation" discount in comparison with its peers, combined with a potential  improvement in longer-term co-brand credit card economics and Evercore ISI’s outlook of improved global GDP growth in 2020.

American Airlines (NYSE: AAL) reported earnings on October 24 and the company beat on the top line, but missed on the bottom line.The stock jumped 3.96% after the report. Despite the optimistic report, the stock could face some headwinds in the coming weeks as there is potential resistance from two different sources just overhead.

Delta Airlines Inc. reported  higher-than-expected third quarter earnings, while its revenues matched expectations.  The airline’s adjusted earnings for the three months ending in September increased +29% year-over-year to $2.32 per share - 5 cents ahead of the Street consensus forecast. Net revenues rose +6.5% to $12.6 billion, largely in line with analysts' forecasts. Delta expects its current quarter earnings to range between $1.20 and $1.50 per share, and projects revenues to grow by more than +5% from the prior year quarter. Looking farther ahead, the company predicts that fiscal full-year 2019 earnings would range between $6.75 and $7.25 per share.It expects and a full-year pre-tax profit margin improvement of between 14.5% and 16.5% for the year. Separately, Delta also revealed that it is expanding its workforce this year and next by 12,000 as it seeks to expand operations.

Over the last eight months a trend channel has formed on Delta Air Lines (NYSE: DAL).The channel is very well defined and the lower rail connects the lows for 2019 while the parallel upper rail connects the highs from April and July.

Delta Air Lines boosted its guidance for second-quarter revenue and earnings. The airline raised its second-quarter-earnings forecast to a range of between $2.25 and $2.35 per share, up from its prior guidance of $2.05 to $2.35 a share. Delta also lifted its guidance on second-quarter revenue growth to between 8% and 8.5%, compared to its earlier guidance of between 6% and 8%. The carrier’s total load factor -  a key profitability metric for airlines - increased to 90.4% in June from 88.5%, as domestic load factor rose to 90.9% from 88%, and international load factor climbed to 89.5% from 89.4%.Total air traffic for Delta increased 6.2% to 22.77 billion revenue passenger miles, while capacity rose 4% to 25.19 billion available seat miles.

I cited a downward sloped trend line, a bearish crossover from the daily stochastic readings, and a bearish signal from the Tickeron Trend Prediction Engine as the reasons for the bearish posture. The stock was trading just under $34 at the time of that blog entry and it would eventually fall to $27.This signal calls for a decline of at least 4% over the next month. American’s fundamentals are part of the reason for the downward trend.