Delta joins other airlines in cutting profit estimates on higher costs

Delta Air Lines airplanes at the Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, U.S., on Tuesday, Dec. 21, 2021.

Elijah Nouvelage | Bloomberg | Getty Images

Delta on Thursday joined other carriers in trimming its profit estimates as costs rise.

The airline said it expects to report adjusted per-share earnings of between $1.85 and $2.05, down from an earlier forecast of $2.20 to $2.50. Delta said it is paying more for fuel than previously expected this quarter, but added that maintenance costs were also more than it anticipated.

Delta forecast unit revenue would fall between 2% and 3% in the third quarter from last year, better than the previous estimate that sales could drop as much as 4%. The company also reiterated its estimate for full-year adjusted earnings of $6 to $7 a share.

The company trimmed its quarterly guidance as the industry faces increased expenses just as it enters a period of lower travel demand.

American Airlines, Spirit Airlines and Frontier Airlines warned Wednesday that higher costs would cut into their profits in the summer quarter. Their lowered outlooks followed similar guidance from Southwest Airlines and Alaska Airlines.

Delta shares were down 1% in morning trading Thursday.

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