In the past week, Delta Air Lines DAL slashed its earnings per share outlook for the first quarter of 2025, citing economic uncertainties and the resultant reduction in consumer and corporate confidence, which is likely to result in a slowdown in domestic air travel demand.

Meanwhile,European carrier Ryanair Holdings RYAAY reported solid traffic numbers for the month of February, driven by upbeat air travel demand. Mexican carrier Controladora Vuela Compañía de Aviación VLRS or Volaris reported a year-over-year increase in revenue passenger miles (RPMs: a measure of air traffic) for the month of February.

Allegiant Travel ALGT announced a change in management ranks with its Chief Operating Officer or COO stepping down and an interim replacement named.

Read the last Airline Roundup here.

Recap of the Recent Most Important Stories

1. DAL lowers its first-quarter 2025 adjusted earnings per share guidance to the range of 30-50 cents from the previously guided range of 70 cents to $1 per share. The Zacks Consensus Estimate for first-quarter EPS is pegged at 84 cents.

The adjusted operating margin in the March quarter is now expected to be in the range of 4-5%, which is lower than the prior guided range of 6-8%. Management has also reduced first-quarter 2025 total revenues (adjusted) view and expects the same to increase in the 3-4% band from first-quarter 2024 actuals. The updated revenue outlook marks a downside from the previous expectation of 7-9% year-over-year growth.

DAL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2. At Ryanair, the number of passengers transported by its flights was 12.6 million in February 2025, reflecting a 14% year-over-year increase. RYAAY’s traffic in February was higher than the January reading of 12.4 million. The February load factor (percentage of seats filled by passengers) of 92% remained flat on a year-over-year basis. The figure was higher than the load factor of 91% reported in January 2025.

3. In February, Volaris reported a 3.4% year-over-year increase in consolidated capacity (measured in available seat miles). The load factor decreased by 0.7 percentage points to 85.2%. The load factor fell as the increase in consolidated traffic (2.5%) was less than the increase in consolidated capacity. During the month, Volaris transported 2.2 million passengers.

4. Allegiant announced that chief operating officer Keny F. Wilper stepped down on March 3. He will stay on as an advisor while the company conducts a search for his successor. Tyler Hollingsworth, senior vice president of Flight Operations, is serving as interim COO.

Airline Stocks Performance

The following table shows the price movement of the major airline players over the past week and during the last six months.

Image Source: Zacks Investment Research

The NYSE ARCA Airline Index declined 10.1% to $58.4 as most airline stocks traded in the red over the past week. Over the past six months, the NYSE ARCA Airline Index has increased 12.1%.

What’s Next in the Airline Space?

Latin carrier Copa Holdings CPA is expected to reveal its February traffic results in the coming days. Upbeat air-travel demand is likely to result in higher passenger revenues, boosting results. Load factor (% of seats filled by passengers) is likely to have improved on a year-over-year basis in February owing to upbeat traffic.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report

Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report

Copa Holdings, S.A. (CPA) : Free Stock Analysis Report

Allegiant Travel Company (ALGT) : Free Stock Analysis Report

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research