A rising economic situation, a moderation in the rate of inflation, and the prospect of lower interest rates later this year – all of these have a positive effect on the bedrock support of the US economy, the average consumer. They have felt a pinch recently from high inflation and high interest rates, but wages and job creation remain strong – and the positive mid-term outlook bodes well for consumer discretionary spending. Airline carriers are likely to see gains in such a scenario. The airlin
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Delta Air’s disappointing earnings report isn’t stopping Wall Street from maintaining a bullish outlook, pegged to a second-half recovery. Patrick T. Fallon / AFP via Getty Images
Airline investors aren’t expecting much this earnings season and are looking ahead to the second half of the year.
That narrative appeared to take hold after
Delta Air Lines (ticker: DAL) missed fourth-quarter-earnings estimates and issued guidance below consensus estimates for the first quarter. Delta’s results don’t bode well for the two other full-service carriers:
American Airlines Group (AAL). United is scheduled report earnings next Wednesday, with American scheduled to report on Jan. 28.