Three airline stocks — United (NASDAQ:UAL), Delta (NYSE:DAL) and American (NASDAQ:AAL) — are advancing and trending on social media after all of the companies reported generally strong third-quarter metrics. The airlines’ results indicate that the sector is not being meaningfully affected by high inflation or by any of the other negative economic trends that are worrying the Street.
Among airline stocks in early trading, UAL stock is climbing 5.4%, DAL stock is advancing 1.5%, and AAL stock is gaining 2%.
Airline Stocks: Q3 Numbers and Comments
United’s Q3 earnings per share (EPS), announced yesterday after the market closed, came in at $2.81, versus analysts’ average estimate of $2.28. Moreover, its sales soared 66% year-over-year to $12.88 billion, $140 million above analysts’ mean outlook.
Appearing on Bloomberg TV this morning, United CEO Scott Kirby stated that the airline was benefiting from increased “premium leisure demand… enabled by the hybrid work trend.” Kirby explained that “hybrid work makes every weekend a holiday” for those who work at home some weekdays. In other words, those individuals can work from remote locations for one or two weekdays, enabling them to take many more trips.
Last Thursday, Delta announced Q3 EPS of $1.51, slightly below analysts’ average outlook of $1.53. However, its revenue jumped 53% YOY to $14 billion, while its top line, excluding certain items, came in at $12.84 billion, slightly above the mean estimate.
“We reached a major milestone this quarter, with adjusted revenue 3 percent higher and unit revenues up 23 percent compared to 2019, marking the highest revenue and unit revenue quarter in Delta’s history,” said the airline’s president, Glen Hauenstein, in a statement.
Finally, on Oct. 11, American disclosed that it expected its Q3 top line jumped 13% versus the same period in 2019. AAL added that its “total revenue per available seat mile” was anticipated to have climbed about 25% versus 2019, and is above its prior outlook by about 20%-24%.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
