MK82Man
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EARNINGS OUTLOOK
Delta, Continental, Southwest on deck
Airline sector quarterly reports begin next week
By August Cole, CBS.MarketWatch.com
Last Update: 4:30 PM ET April 7, 2004
SAN FRANCISCO (CBS.MW) -- The airline sector is still a long way from an "earnings" season, but when Delta Air Lines delivers its first-quarter results next week, the improvement over last year will be easy to see.
There will be smaller losses at most carriers because the run-up to the campaign in Iraq took a toll on travelers last year.
To be sure, after record jet-fuel prices in the first quarter, the first round of reports are expected to bring a lot more red ink than had been expected. Accordingly, analysts have widened their loss estimates in recent weeks.
"I think the market has already factored in the worst," said Ray Neidl, Blaylock & Partners airline analyst.
First up is Delta Air Lines (DAL: news, chart, profile), reporting on Apr. 14. As much as the company's results are going to be scrutinized, so too will executive language for any sign that the company is closing in on cutting costs tied to its pilots.
The company warned in March that it expected a wider $400 million loss, blaming jet-fuel costs.
Analysts expect, on average, a per-share loss of $2.95, according to Thomson First Call. Revenue is forecast at $3.38 billion. The losses should be narrower than the year-ago period.
At Delta, as with other carriers, analysts will be looking for how hard the bottom line has been hit by increasingly expensive jet fuel. Most industry watchers foresee losses in the billions for 2004 in large part because of the effects of higher prices.
Continental Airlines (CAL: news, chart, profile) and Southwest Airlines (LUV: news, chart, profile) will report its results on Apr. 15.
Continental's first-quarter results are also expected to be a loss. Analysts expect a per-share loss of $1.35 a share, narrower than last year, while revenue is forecast at $2.26 billion. The airline also has loudly said that fuel prices are hurting the company's results. Attempts to pass some of the costs on to consumers has not been a widespread success, raising further concerns that prices will continue to remain very low.
Southwest Airlines (LUV: news, chart, profile) will report what will likely be the industry's first profit of the quarter.
Analysts forecast that the rise in per-share earnings to 4 cents a share. Revenue is also expected to increase with analysts expecting revenue of $1.47 billion. The airline is gearing up for its entry into the Philadelphia market, a direct challenge to US Airways (UAIR: news, chart, profile).
August Cole is spot news editor at CBS.MarketWatch.com in San Francisco.
© 1997-2004 MarketWatch.com, Inc. All rights reserved.
Delta, Continental, Southwest on deck
Airline sector quarterly reports begin next week
By August Cole, CBS.MarketWatch.com
Last Update: 4:30 PM ET April 7, 2004
SAN FRANCISCO (CBS.MW) -- The airline sector is still a long way from an "earnings" season, but when Delta Air Lines delivers its first-quarter results next week, the improvement over last year will be easy to see.
There will be smaller losses at most carriers because the run-up to the campaign in Iraq took a toll on travelers last year.
To be sure, after record jet-fuel prices in the first quarter, the first round of reports are expected to bring a lot more red ink than had been expected. Accordingly, analysts have widened their loss estimates in recent weeks.
"I think the market has already factored in the worst," said Ray Neidl, Blaylock & Partners airline analyst.
First up is Delta Air Lines (DAL: news, chart, profile), reporting on Apr. 14. As much as the company's results are going to be scrutinized, so too will executive language for any sign that the company is closing in on cutting costs tied to its pilots.
The company warned in March that it expected a wider $400 million loss, blaming jet-fuel costs.
Analysts expect, on average, a per-share loss of $2.95, according to Thomson First Call. Revenue is forecast at $3.38 billion. The losses should be narrower than the year-ago period.
At Delta, as with other carriers, analysts will be looking for how hard the bottom line has been hit by increasingly expensive jet fuel. Most industry watchers foresee losses in the billions for 2004 in large part because of the effects of higher prices.
Continental Airlines (CAL: news, chart, profile) and Southwest Airlines (LUV: news, chart, profile) will report its results on Apr. 15.
Continental's first-quarter results are also expected to be a loss. Analysts expect a per-share loss of $1.35 a share, narrower than last year, while revenue is forecast at $2.26 billion. The airline also has loudly said that fuel prices are hurting the company's results. Attempts to pass some of the costs on to consumers has not been a widespread success, raising further concerns that prices will continue to remain very low.
Southwest Airlines (LUV: news, chart, profile) will report what will likely be the industry's first profit of the quarter.
Analysts forecast that the rise in per-share earnings to 4 cents a share. Revenue is also expected to increase with analysts expecting revenue of $1.47 billion. The airline is gearing up for its entry into the Philadelphia market, a direct challenge to US Airways (UAIR: news, chart, profile).
August Cole is spot news editor at CBS.MarketWatch.com in San Francisco.
© 1997-2004 MarketWatch.com, Inc. All rights reserved.
