Press "Enter" to skip to content

Delta's guidance comes up short as rising fuel costs weigh

Delta Boeing 757


Delta Air Lines reported better-than-expected second-quarter results Wednesday morning, but guided both third-quarter and full-year earnings below Wall Street estimates because of rising fuel costs. Shares were up about 1% in early trading on Thursday. 

The US’s number two carrier earned an adjusted $1.77 a share on record revenue of $11.8 billion. Those numbers were ahead of the respective $1.72 and $11.7 billion that Wall analysts surveyed by Bloomberg were expecting. Delta says its pre-tax income of $1.6 billion was hampered by a $600 million impact from higher fuel prices. 

“With an expected $2 billion higher fuel bill for 2018, we are now forecasting our full-year earnings to be $5.35 to $5.70 per share, CEO Ed Bastian said in the earnings report. That forecast is below the $5.74 a share expected by the Bloomberg consensus.

Delta’s third-quarter earnings forecast of $1.65 to $1.85 a share missed the $1.83 that was anticipated. 

The airline announced it is hiking its dividend 15% to $0.35 a share. 

Shares of Delta were down 11% this year through Wednesday.

Delta Air Lines

Join the conversation about this story »

NOW WATCH: Why Rolex watches are so expensive

Originally posted at BusinessInsider.com

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *