Delta to Trim Flights as Fuel Prices Rise

Galtero Lara
Julio 12, 2018

Delta Air Lines Inc (DAL.N) topped estimates for quarterly profit and operating revenue Thursday as a rise in average fares trumped an nearly 40 percent surge in fuel costs, pushing shares higher. This year's total fuel bill is expected to be $2 billion more than it was in 2017.

Delta's fuel bill rose by $578 million in the second quarter over the same period previous year, the carrier said Thursday.

Those costs prompted Delta to cut its full-year earnings forecast to a range of $5.35 to $5.70 per share from $6.35 to $6.70 per share, months after bigger rival American Airlines Group Inc (AAL.O) also cut its full-year outlook.

The carrier said it is raising its quarterly dividend by 15% to 35 cents a share.

More news: 'You are my very heart': Hero cave diver's wife mourns

However, strong travel demand and an increase in average fares helped the Delta's second-quarter profit top Wall Street estimates.

"While we are pleased with our revenue performance in the quarter, accelerating the recapture of the recent fuel price increases is the number one focus for our commercial team", said Delta President Glen Hauenstein.

Up to Wednesday's close, the company's stock had fallen 11 percent this year.

Otros informes por

Discuta este artículo

SIGUE NUESTRO PERIÓDICO