Delta stock unraveled to four-month lows Thursday after Delta Air Lines' earnings and outlook came in below forecasts.
Delta Air Lines reported an 11.9% decline in earnings to $2.36 per share adjusted, just missing FactSet views of $2.37 per share. Adjusted revenue rose 5.4% to $15.41 billion, marking a record for the June-ending quarter. However, Delta's sales results fell short of estimates for $15.45 billion in revenue.
In the release, Delta president Glen Hauenstein said that peak summer travel demand remains strong.
Passenger revenue rose about 5% to $13.84 billion, but missed forecasts for $13.94 billion. The load factor for the quarter eased about one percentage point to 87%, compared to views of 88%.
Delta Air Lines guided Q3 earnings between $1.70 to $2 per share, compared to $2.03 per share last year. The Atlanta-based expects total revenue climbs 2% to 4% for the upcoming quarter. The outlook was below FactSet forecasts of $2.03 per share on 5.6% revenue growth to $15.36 billion.
Delta maintained its full-year earnings outlook of $6 to $7 per share with $3 billion to $4 billion in free cash flow, which is in-line with FactSet expectations. The company also announced it will increase its quarterly dividend by 50% starting in September.
Delta Stock Sinks
DAL stock fell 3.9% Thursday, dropping to its lowest level since March. Shares tumbled 7.5% in early trade.
DAL stock had advanced 11.7% in 2024.
Other airlines pared losses after following Delta lower Thursday. American Airlines retreated 3.8% Thursday after falling 6.4% in the morning. United Airlines shed 3.2%, following nearly a 6% drop early Thursday.
Southwest Airlines slid 2.5% Thursday. Spirit Airlines reversed its early decline to climb 1%.
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