“Delta Stock Slumps After Airline Reports Higher Costs”
October 2, 2019
“Delta Air Lines stock is tumbling on Wednesday after the airline raised cost estimates in its third-quarter update…
…On Wednesday, Delta provided an update on its third quarter. The company said it now expects earnings per share between $2.20 and $2.30, narrowing its previous $2.10–$2.40 range; the consensus estimate is $2.26. The company sees pretax margins climbing 1.75 percentage points to 15.5%, compared with prior guidance for a 14.5%–16.5% climb. Unit revenue looks set to climb 2.5%, at the midpoint of its 1.5%–3.5% previous forecast.
However, Delta also said that unit costs will be up 2.25% in the quarter as well, above its previous expectation for 1% to 2%. It also raised its unit costs for the full year, as it now sees a 2% increase instead of a 1% increase, citing employee wage increases and maintenance…”