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Strong 3Q15 Performance for Delta Air Lines

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Market welcomes Delta Air Lines’ strong 3Q15 results

Delta Air Lines (DAL) reported its 3Q15 earnings on Wednesday, October 14, 2015. The company’s top line declined 0.6% in 3Q15 over 3Q14 to reach $11.1 billion.

The airline announced $1.4 billion in net income, or $1.74 per diluted share. These results were better than what was expected by consensus estimates, which had predicted $1.72 per diluted share.

The stock market responded positively to Delta’s better-than-expected results. The stock rose 1.8% during the day to close at $48.59, while its peers’ stock prices rose marginally during the day. Delta’s stock price has increased by over 10.4% in the quarter, largely driven by growth in its capacity and traffic demand during the quarter. However, its stock price has decreased 1.2% year-to-date.

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Performance of Delta versus its peers

Alaska Air Group (ALK) was the only stock to give a positive year-to-date performance, with an increase of 21.7%. The remaining three major domestic competitors of Delta have seen their stock prices fall. American Airlines (AAL) lost over 18%, United Airlines’ (UAL) stock fell 13%, and Southwest Airlines’ (LUV) stock fell 4.3% in the same period.

About Delta Air Lines

Delta Air Lines is one of the leading passenger and cargo airlines in the US. The airline shares joint ventures with Air France KLM, Virgin Atlantic, and Virgin Australia. These alliances help strengthen its international and domestic air routes. Delta employs about 80,000 people around the world and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the global SkyTeam Airline Alliance.

Investors can gain exposure to airlines like Delta Air Lines (DAL) through the iShares Transportation Average ETF (IYT). IYT holds ~38% in airline stocks and ~3% in Delta Air Lines.

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