Topline
Shares of Delta tumbled 7% on Thursday, pacing the company’s worst loss so far this year, after the airline reported a decline in earnings and forecast lower profits for the upcoming quarter that fell short of analyst expectations.
The airline said it remained optimistic for increased summer travel in the upcoming months. Getty Images
Key Facts
Delta’s shares dropped to about $43.50 as of around 10:15 a.m., following an earlier plunge in premarket trading as low as 10%. The stock’s furthest fall before Thursday came on Jan. 12, when Delta’s shares fell nearly 9% after the airline cut its profit outlook for 2024. Delta reported a nearly 12% decline in earnings to $2.36 per share, falling just short of analyst estimates of $2.37 per share, while also lowering its guidance for third-quarter earnings to between $1.70 and $2 per share, lower than forecasts of $2.03, according to FactSet. Revenue increased 5% to $13.84 billion, short of $13.94 billion estimates, while net income dropped about 30% year-over-year to $1.31 billion.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Crucial Quote
Ed Bastian, Delta’s chief executive, told CNBC the airline’s “second quarter was a really strong performance,” adding the company’s latest earnings were impacted by discounted fares that other airlines have also offered ahead of an expected revenue boost from summer travel.
Surprising Fact
Delta expects to lose about 1% in revenue from transatlantic flights for the third quarter ahead of the Paris Olympics. Air France said earlier this month that international markets will have a “significant avoidance” of France during the Olympics, estimating about $193 million in losses during the airline’s current quarter, as industry officials reportedly believe travelers have safety concerns as more people travel to the French capital.
Key Background
Airlines have struggled in recent months as flights face increased capacity and rising costs. The Transportation Security Administration said more than 3 million people were screened through airport security for the first time on Sunday, breaking the TSA’s previous single-day record set just two weeks earlier. Eight of the 10 busiest days in TSA’s history have come this year, according to the agency. Both Delta and rival United have said they expect revenue to increase through the summer, with the TSA expecting its busiest travel season ever as both airlines add more premium seats at higher prices.
Further Reading
Delta Shares Fall 7% Toward Worst Day This Year
- Advertisment - 
Recent Comments
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer