Delta now anticipates full-year earnings per share between $5.10 and $5.60, a significant retreat from its previous projection of $6.50 to $7.50. Chief Executive Ed Bastian described the current landscape as one of the most elevated fuel environments in recent history, noting that the carrier faced $500 million in fuel costs beyond its July estimates during the third quarter alone.
In section Market Quotes
Delta Air Lines Slashes Profit Outlook as Fuel Costs Surge
Persistent fuel price volatility has forced Delta Air Lines to downgrade its full-year earnings forecast, with the company bracing to absorb an additional $6 billion in energy expenses this year. Shares dropped 3.7% in premarket trading Friday as investors reacted to the updated guidance and squeezed profit margins.
Despite the bottom-line pressure, passenger demand remains robust. The airline reported a 21% rise in total operating revenue to $20.19 billion, comfortably exceeding analyst expectations of $17.65 billion. While the refinery segment provided a $2.6 billion boost, net income for the third quarter still slid to $756 million, down from $1.42 billion a year ago. Adjusted earnings per share hit $1.72, missing the $1.77 consensus target set by FactSet analysts.
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