Delta Airlines (-0.33% to $50.62) is down on Wall Street after revealing a lower-than-expected revenue forecast for the fourth quarter. The American airline delivers a range of 13.9 to 14.2 billion dollars, while the consensus was established at 14.22 billion. She cites “the reduction in travel demand around the American presidential elections”. Adjusted earnings per share are expected to be between $1.60 and $1.85.
In the third quarter of 2024, net profit increased by 15% to $1.27 billion and the operating margin fell from 12.8% to 9.8% in one year. On an adjusted basis, earnings per share came to $1.50, below the consensus of $1.52. Operating revenues reached $15.68 billion in the second quarter, up 1%.
“People like to be at home during election time,” Delta CEO Ed Bastian said in an interview on CNBC, adding that the slowdown in discretionary spending would not be limited to the airline industry. According to him, this slowdown in demand should, however, be temporary, as the holiday season is expected to be “strong”.
Reuters reports that Delta said measures taken during the summer of 2024 by U.S. airlines to reduce capacity improved its own pricing power across all regions in the third quarter. Delta expects this trend to continue into the fourth quarter.
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