Delta Air forecasts Q4 revenue below estimates

FE Team | Published: October 10, 2024 23:52:49

CHICAGO, Oct 10 (Reuters): Delta Air Lines on Thursday forecast quarterly revenue largely below expectations in anticipation of slower travel spending against the backdrop of the upcoming US presidential election, sending its shares down 6.3 per cent before the bell.
The carrier expects fourth-quarter revenue between $13.9 billion to $14.2 billion, compared to average analysts' estimate of $14.22 billion, according to LSEG data.
The weak forecast sent shares of rivals United Airlines and American Airlines tumbling 3 per cent, while Southwest Airlines slipped 1 per cent.
An excess supply of airline seats in the domestic market during the summer travel season had forced carriers to discount fares to fill their planes, hurting their profits.
Since then US airlines have moderated capacity. Annual domestic seat growth has slowed to 1.5 per cent in October and November from 5.5 per cent in July, according to BofA analysts.