Delta Lowers Profit Outlook on Higher Fuel Costs But Sees Ongoing Strong Travel Demand

Delta Air Lines cut its third-quarter profit outlook due to higher fuel prices
Shares are only slightly lower as the airline still expects strong travel demand
Revenue guidance was left unchanged as domestic leisure bookings remain robust
Delta expects fuel prices to be $3.60-$3.70 per gallon, up from prior $3.45-$3.60 range
The airline says it will continue to remain agile in adjusting capacity to match demand

barrons.com

Relevant topic timeline:

9/13/2023

American, Spirit Airlines Cut Summer Profit Forecasts Due to Higher Costs and Lost Pricing Power

American Airlines and Spirit Airlines have warned that higher costs, including fuel expenses and labor deals, will impact their profits during the summer quarter, leading to reduced adjusted earnings per share and lower revenue forecasts.

9/14/2023

Delta Lowers Q3 Profit Outlook on Higher Fuel Costs, Maintains Full-Year View

Delta Airlines has lowered its profit estimates due to rising costs, including higher fuel and maintenance expenses, as well as lower travel demand amid increased industry expenses.

9/14/2023

Rising Costs Dampen Profit Outlook for Airlines, Delivery Firms as Unions Push for Higher Pay

A surge in fuel costs and employee pay hikes are impacting profits for companies across various industries, particularly airlines, as Delta, American, Alaska, and Southwest Airlines all revise their earnings forecasts.