|I agree with you, Paul. But man, Mr. Market sure doesn't! He is in a selling mood today! And airlines are not an exception!|
Delta guidance crushes airline sector
Jan. 3, 2019 10:34 AM ET|By: Clark Schultz, SA News Editor
Airline stocks are reeling after a preannouncement by Delta Air Lines ( DAL -9.2%) of Q4 results included a +3% unit revenue reading vs. +3% to +5% prior guidance. Investors are locked in on the PRASM tally, despite Q4 total revenue that came in ahead of consensus estimates and an EPS range ($1.25-$1.30) that was close the the $1.28 consensus mark. Delta also guided for a pre-tax margin rate of 10% to 11% from 9% to 11% prior.
Notable decliners off the Delta update include American Airlines Group ( AAL -9.7%), Mesa Air ( MESA -8.7%), Spirit Airlines ( SAVE -8.4%), United Continental ( UAL -6.3%), Alaska Air ( ALK -6.5%), SkyWest ( SKYW -4.7%), JetBlue ( JBLU -3.9%), Southwest Airlines ( LUV -4.9%) and Allegiant Travel ( ALGT -4.5%).
Related ETF: JETS.