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Delta Air Lines Desperate to Snap Post-Earnings Curse

DAL has a dismal post-earnings history, but a lot of momentum lately

Deputy Editor
Dec 26, 2024 at 2:42 PM
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Delta Air Lines Inc (NYSE:DAL) will release one of the first corporate earnings reports of 2025, with the airliner scheduled to report before the open on January 10. The travel industry seems to have finally put the coronavirus behind it, and investors are eager to see how that plays out next year. 

On the charts, DAL recently hit a Dec. 5 record high of $67.50, surpassing its pre-covid peak. At last glance, Delta Air Lines stock was up 0.3% at $62.72, and headed for its fifth-straight daily gain. Since the start of the year, the shares are up 55.9%. 

DAL Dec26

Unfortunately for DAL, it's not looking good in regard to post-earnings history. The stock finished all eight post-earnings sessions lower over the last two years, including a 9% drop last January. This time, the options pits are pricing in a next-day move of 8.1%, regardless of direction, which is much larger than the 3% move the stock has averaged over the last eight quarters. 

In the event of a positive post-earnings reaction, short covering could give the shares a boost. Short interest has been building, and represents 5.6% of the stock's available float. 

 

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