Delta Air Lines cut its full-year profit forecast after third-quarter earnings fell short of expectations, with its quarterly fuel bill rising 62% from a year earlier.
Delta reported adjusted earnings of $1.72 per share, below the $1.82 estimate. Adjusted revenue rose 15.7% to $17.58 billion but missed the $17.76 billion estimate. The airline said fuel cost $500 million more in the quarter than it had projected in July.
Delta lowered its adjusted earnings forecast to $5.10–$5.60 per share from $6.50–$7.50 and reduced its free cash flow forecast to $2.5 billion from $3 billion–$4 billion. Chief Executive Ed Bastian said the airline expects to absorb a $6 billion increase in fuel costs for the year. Premium business grew 18% from a year earlier, but was not enough to offset the fuel pressure.
Please note! Comments are published by readers. The opinions expressed may not reflect the position of the editorial team. USCT is not responsible for the content of readers' opinions and asks authors to observe moral standards, not to incite national or racial hatred, and to avoid rudeness. Think before you speak. You are responsible for your words! By publishing an opinion, you agree to the rules! If this request is ignored, USCT reserves the right to deprive the user of the ability to leave comments.