Delta drags down airlines after fuel cost spurs cut to forecast
Delta Air Lines dragged down US airlines after the carrier trimmed its profit outlook, citing the rising price of jet fuel. Q2 earnings will be no more than US$1.75 a share, Delta said Wednesday. That’s down from a previous forecast of as much as $2 a share. Fuel prices have risen about 12% since the beginning of the quarter, and fares typically take 6 months to a year to catch up, the airline said. Delta cut its forecast 6 weeks after a similar move by American Airlines Group. The carrier said it would make a decision within the next month on seating capacity for the fall. Paring the supply typically enables airlines to raise fares, assuming demand remains strong. Delta maintained its prediction for an increase in capacity of no more than 4% this quarter. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-06-07/sky/delta-drags-down-airlines-after-fuel-cost-spurs-cut-to-forecast
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Delta drags down airlines after fuel cost spurs cut to forecast
Delta Air Lines dragged down US airlines after the carrier trimmed its profit outlook, citing the rising price of jet fuel. Q2 earnings will be no more than US$1.75 a share, Delta said Wednesday. That’s down from a previous forecast of as much as $2 a share. Fuel prices have risen about 12% since the beginning of the quarter, and fares typically take 6 months to a year to catch up, the airline said. Delta cut its forecast 6 weeks after a similar move by American Airlines Group. The carrier said it would make a decision within the next month on seating capacity for the fall. Paring the supply typically enables airlines to raise fares, assuming demand remains strong. Delta maintained its prediction for an increase in capacity of no more than 4% this quarter. <br/>
