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Delta Airlines leads off the second quarter earnings report season for U.S. airlines Thursday morning. Analysts now expect Delta and its biggest rivals to all announce better-than-previously-expected results In this case, we’re talking about earnings figures a little bit greater than the companies previously had led analysts to expect and on which those analysts based their public earnings predictions.
Delta’s on a hot streak right now, with investor Warren Buffett’s Berkshire Hathaway increasing its stake in the company to around 11%, two-third of analysts on Wall Street recommending its shares a buy and none advising clients to sell Delta shares, and a stock price around $59, which gives investors plenty of room to earn more money if the stock reaches analyst’s average target price this year of $67.40.
Still, analysts foresee Southwest reporting a 6% rise in adjusted second-quarter earnings to $1.34 a share and quarterly revenue reaching nearly $6 billion. That, again, is a result of very strong demand for domestic travel so far this summer and the higher average prices that demand is supporting. The second quarter also saw the end of what had been an ugly dispute with Southwest’s mechanics.