Delta Air cuts Q1 operating margin forecast, citing higher costs

Delta Air Lines Monday cut its operating margin forecast for the current quarter, citing higher costs, and said it expected passenger unit revenue to be at the lower end of its forecast. The airline said its margins will likely contract this year as the pace of revenue improvement lags cost increases. "Market fuel prices are tracking up about 55% for the quarter, which is expected to be the greatest year-on-year increase in 2017," the company said. Delta Air now expects operating margins to increase about 10-11%, less than 11-13% rise it had previously forecast. The airline now expects passenger unit revenue, to be about flat in Q1 ending March. It had earlier expected passenger unit revenue to be between flat and up 2%. <br/>