Delta Sees No Impact on Bookings From London Terror Attacks

Delta's (DAL) chief financial officer said Wednesday that the carrier has seen no impact on bookings from recent terrorist attacks in Great Britain.

"We've actually seen bookings in the summer have been remarkably resilient," said Paul Jacobson, who was speaking at the Deutsche Bank investor conference. "We don't see any impact {from} that.

"We're expecting a good summer there," Jacobson said. "It's always a fantastic place to visit and the people are strong and we expect that to hold up. We haven't really seen any impact on forward bookings."

Earlier, speaking more generally of the trans-Atlantic market, Jacobson said Delta has seen "a lot of low-cost competition continuing to grow in that space."

However, he said, Delta has "a solid foothold in Europe and a strong network presence {that} provides a very consistent profitability base."

Ten years ago, Jacobson noted, Delta didn't have a single flight to London's Heathrow Airport. He said the 2013 purchase of 49% of Virgin Atlantic enabled "access to Heathrow that would have been nearly impossible." Previously, he noted, Delta was "relegated to Gatwick."

Delta said last week that its passenger revenue per available seat mile in May increased 3.5%.

For the current quarter, Jacobson said, unit revenue will be in the upper half of Delta's guidance of between 1% and 3%.

The increase is "driven by continued improvement in close-in pricing," he said. Nevertheless, "June will probably be slightly lower than May."

Meanwhile, United (UAL) reported Wednesday that it too continues to expect that current quarter PRASM will be up 1% to 3%. However, "the Pacific region is experiencing incremental weakness due to unfavorable supply and demand dynamics in China and Hong Kong," United said in a prepared statement.

Additionally, Southwest (LUV) said Wednesday that it continues to expect its second-quarter 2017 revenue per available seat mile to increase between 1% and 2%.

The United and Southwest projections apparently weren't good enough for investors.

In a report issued Wednesday, Citi analyst Kevin Crissey wrote that Southwest's reiterated guidance is "disappointing given domestic strength. We believe (Wall Street) expectations had migrated to more like 2%-3%."

As for United, Crissey wrote, "We believe the Street thought management had been conservative with prior guidance and {was} hoping for a more positive tone from this report."

Delta shares rose 1.2% on Wednesday, United shares fell 1.3% and Southwest declined 0.6%.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

More from Investing

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists