Delta Air Lines Follows Suit With Its Industry Counterparts, Lowers Q3 Profit Guidance

Delta Air Lines, Inc DAL issued an investor update, confirming fiscal year 2023 EPS guidance of $7 versus the consensus of $6.61.

DAL expects third-quarter earnings per share of $1.85-$2.05 (prior expectation $2.20-$2.50) versus consensus of $2.32 and operating margin of ~13% (previous expectation was in mid-teens).

Total revenue growth is expected to be within the upper half of initial guidance of +11% to +14%.

Related: American Airlines, Spirit Lower Q3 Profit Outlook, Blame Higher Costs

Delta sees Q3 TRASM to be down 2%-3% (prior 2%-4%), led by strength in the Transatlantic with steady Domestic trends, including 1 point of pressure from MRO and Cargo.

Also Read: Airlines Caught In Airfare Scandal: Antitrust Lawsuit Shakes Delta, United

The airline sees fuel price of $2.75 - $2.90, up from previous guidance of $2.50 - $2.70.

Delta anticipates a 1% to 2% rise in non-fuel unit costs for the September quarter, surpassing their initial projections, primarily because of unexpectedly higher maintenance costs.

Price Action: DAL shares are trading lower by 0.18% at $39.48 on Thursday.