Delta Air Lines nyse Dal Shares Slide Amid Downward Revision of 2024 Earnings Guidance

Delta Air Lines (NYSE: DAL) Shares Slide Amid Downward Revision of 2024 Earnings Guidance

Delta Air Lines (NYSE: DAL) shares tumbled almost 9% on Friday following the airline’s downward revision of its 2024 earnings forecast, citing concerns about the economy and disruptions in its supply chain. Furthermore, the stock took a hit from surging oil prices amid escalating tensions in the Middle East.

Delta Air Lines (DAL) has adjusted its 2024 earnings per share (EPS) forecast to $6 to $7, a decrease from its earlier guidance of over $7. The company reported earnings of $6.25 per share in the previous year.

CEO Ed Bastian stated that the company is exercising caution, considering factors such as the economic outlook, the airline’s supply chain uncertainties, and the efficiency of aircraft repairs and return to service.

The cautionary statement coincided with Delta’s release of better-than-expected fourth-quarter fiscal 2023 profit and sales, driven by the sustained increase in post-pandemic travel demand. The company revealed earnings per share (EPS) of $1.28 and a notable 11% rise in revenue to $13.66 billion, outperforming the estimates put forth by analysts.

Delta Air Lines (NYSE: DAL) noted that its positive financial results were influenced by a surge in international ticket sales, showing a 25% increase from the same quarter in 2022. The company also observed an increase in passengers opting for premium seating, resulting in a 15% rise in revenue from these tickets compared to the same quarter of the previous year.

Bastian said,

“Demand for air travel remains strong and our customer base is in a healthy financial position with travel a top priority.”

DAL stock closed the trade at $38.47 on Friday, marking an 8.97% decrease compared to the closing price on January 11. The stock experienced a decline of almost 1.7% in the past year.