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Delta Reports First Unit Revenue Growth Since 2015

By U.S. News & World Report

Delta Air Lines, Inc. (ticker: DAL) shares dropped 2 percent Thursday morning after the company reported a second-quarter earnings miss. But despite the disappointing earnings, Delta said unit revenue and margins are trending in the right direction heading into what could be a strong second half of the year.

[See: 7 of the Best Cheap Stocks to Buy Under $10.]

Delta reported earnings per share of $1.64, slightly missing consensus analyst estimates of $1.66. Revenue on the quarter was $10.8 billion, up 3 percent from a year ago.

Passenger unit revenue increased by 2.5 percent, and capacity increased by 0.4 percent. The company’s operating margin also expanded to 18.4 percent, a 1 percent increase from a year.

Delta president Glen Hauenstein says the second quarter marked Delta’s return to unit revenue growth for the first time in two-and-a-half years.

“This improvement resulted from a strengthening demand environment and our commercial initiatives to provide customers more choice, an innovative experience and a broader global network,” Hauenstein says.

Looking ahead, Delta guided for third-quarter unit revenue growth between 2.5 and 4.5 percent on operating margins of between 18 and 20 percent and a 2 percent increase in capacity.

CEO Ed Bastian says the company’s momentum will continue in the quarters ahead.

“While 2017 is a transition period for Delta, we are encouraged by the improvement in unit revenues, leading to increasing conviction in our ability to expand margins as we move through the back half of the year,” Bastian says.

On Wednesday, Delta rivals American Airlines Group ( AAL) and United Continental Holdings ( UAL) both raised their guidance for the second quarter. American Airlines is now expecting to report unit revenue growth in the 5 to 6 percent range, while United is anticipating a 2 percent increase in revenue per available seat mile.

This week, Cowen & Co. analyst Helane Becker said Delta stock is a “must own” for investors headed into a third quarter that should include relatively easy year-over-year comparisons. In August 2016, Delta was forced to cancel roughly 2,000 flights due to a computer outage.

[See: 7 Stocks That Soar in a Recession.]

So which airline stocks will be most popular going forward? “We anticipate a rotation from United and American into Delta,” Becker says.

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Delta Reports First Unit Revenue Growth Since 2015 originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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