Amenity Viewer analyzes Delta's previous earnings call transcripts to set the stage for Delta's upcoming earnings call. We explore two key themes that dominated 2Q earnings call for Delta and the industry as a whole: Fuel costs and Demand.
We used the Amenity Viewer to set the stage for Delta's earnings call. Two key themes dominated the 2Q earnings calls for Delta and the industry as a whole:
While fuel costs may have been a dominant theme across all airlines, their strategy and ability to offset those costs vary. This is likely tor remain a key focus for analysts and may be a driver of relative performance among the airlines in 3Q. Let's explore this in more detail with Viewer.
Delta scored near the top of airlines on an absolute basis with an Amenity Score of 55 (scale -100 to +100). Amenity Scores across the Airlines in 2Q were either flat or declining vs 1Q:
When we drill down into the Company View on Delta, the details yield the following:
With the Company View serving as a backdrop we use Viewer to dive into the transcript itself.
Using the Key Drivers on the left to dive into Cost-Price, we quickly see a clustering of negative highlights related to higher fuel costs. When we see the highlights in the context of the document, it takes us to a paragraph that highlights some clear trends: higher fuel costs are weighing on earnings, despite a strong and improving revenue outlook.
We analyzed these same Cost-Price dynamics in the other Airlines earnings calls. Pricing was mentioned sparingly, with more airlines leaning on operating cost reductions. Note that the two companies most vocal on price (Delta and United Continental) scored near the top of the group overall. Perhaps the strong flexing their muscles? Separately, Southwest lives up to its reputation for more aggressive fuel hedging programs.
United Continental (7/18)
Alaska Air (7/26)
In the Key Driver drop-down on the left, we see another cluster; bullish demand commentary, both leisure and business:
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This communication does not represent investment advice. Transcript text provided by S&P Global Market Intelligence.
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