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Delta Air Lines (DAL - Free Report) is scheduled to report second-quarter 2023 results on Jul 13 before market open.

Let’s see how things are shaping up for Delta Air Lines this earnings season.

Q2 Expectations

The Zacks Consensus Estimate for DAL’s second-quarter 2023 revenues is pegged at $15 billion, indicating 8.6% growth year over year. The top line is likely to have been aided by an uptick in air-travel demand in the United States. Notably, the majority of passenger revenues are coming from the domestic markets. Backed by strong booking trends for summer, the company expects June-quarter revenues (adjusted) to increase in the range of 17-18% from second-quarter 2022 actuals.  

Delta Air Lines expects its adjusted earnings per share to be between $2.25 and $2.50 for the second quarter of 2023. The midpoint of the guided range ($2.375) is however higher than the Zacks Consensus Estimate of $2.34.

Delta Air Lines, Inc. Price, and EPS Surprise

Delta Air Lines, Inc. price-eps-surprise | Delta Air Lines, Inc. Quote

However, fuel expenses are likely to have hurt the bottom line in the second quarter. In first-quarter 2023, the average fuel price per gallon (adjusted) increased 10% from first-quarter 2022 actuals to $3.06. Management expects fuel price per gallon (adjusted) in the $2.55-$2.80 range in the quarter under review.

Even though fuel price has come down from the highs witnessed earlier, it remains at an elevated level. Per our estimates, the average fuel price per gallon is projected to be $2.78 for second-quarter 2023.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Delta Air Lines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Delta Air Lines has an Earnings ESP of +1.58% and a Zacks Rank #3.

Q1 Highlights

DAL's earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. The company reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

Revenues of $12,759 million missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.

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