Business

Airline shares fall after Delta’s weaker-than-expected guidance


Airline stocks fell before the market open on Friday after Delta Air Lines Inc. gave weaker-than-expected guidance in the first quarter.

The carrier’s fourth-quarter results beat analysts’ top and bottom profit estimates, but its shares fell 4.4% pre-market on weak guidance. Delta
DAL,
-3.54%

forecast first-quarter earnings of 15 cents to 40 cents a share. Analysts surveyed by FactSet were looking for earnings of 59 cents a share.

Watch now: Delta Air Lines Q4 results beat analysts’ top and bottom earnings estimates, shares fall on weaker-than-expected guidance

American Airlines Inc.
AAL,
+1.13%

fell 2.9% before market open, while United Airlines Holding Inc.
UAL,
+0.68%

down 2.1%. Southwest Airlines Company
LOVE,
+0.05%

shares fell 1.7%, JetBlue Airways Corp.
JBLU,
+1.48%

down 2.3% and Alaska Air Group Inc.
ALK,
+1.80%

down 1.3%. Spirit Airlines Inc.
SAVING,
+0.49%

shares fell 0.8%. US Global Jets ETF
jet plane,
+0.15%

down 1.9%.

The airline industry is trying to recover from the impact of travel restrictions during the pandemic. In a statement released Friday, Delta said that consumer demand remained strong. The company said strong demand in the fourth quarter drove total domestic passenger revenue 7% higher than in the same period in 2019, before the pandemic hit. International passenger revenue grew 5% in the fourth quarter, compared to the fourth quarter of 2019.

Watch now: FAA computer shutdown caused nearly 10,000 US flights to be delayed

“Motivation continues into 2023 with strong demand trends and we expect Q3 adjusted revenue to be 14 to 17% higher than 2019 at 1% lower capacity,” said owner. Delta president Glen Hauenstein said in the statement.

Airlines shares fell earlier this week after the Federal Aviation Administration’s computer crashed grounded flight across the United States for the first time since 9/11, causing thousands of flight delays.

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button