Delta Airlines, in line with several other carriers, has revised its profit estimates due to escalating costs. The airline now anticipates reporting adjusted per-share earnings in the range of $1.85 to $2.05, a reduction from its previous projection of $2.20 to $2.50. Delta cited increased fuel expenses for the current quarter, surpassing its initial expectations, as well as higher maintenance costs.
However, Delta’s forecast for unit revenue in the third quarter shows a more optimistic outlook, with an anticipated decline of 2% to 3% compared to the previous estimate of a potential 4% drop. The company also reiterated its full-year adjusted earnings estimate, which remains at $6 to $7 per share.
These adjustments in Delta’s quarterly guidance reflect the aviation industry’s growing expenses, coinciding with a period of reduced travel demand. Other airlines, including American Airlines, Spirit Airlines, Frontier Airlines, Southwest Airlines, and Alaska Airlines, have also issued warnings of reduced profits for the summer quarter due to rising costs. As a result of these developments, Delta’s shares experienced a 1% decline in morning trading on Thursday.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Infobeat Today journalist was involved in the writing and production of this article.
