In the same filing, The Atlanta-based airline also raised the lower leg of its revenue growth projection for the quarter to 4-5%, compared to the earlier prediction of 3-5%, betting on more number of passengers traveling this peak season. Clearly, had not the margins been pressurized by fuel expenses, the company would have been able to pull off decent quarterly results.
Speaking at the Deutsche Bank Global Industrials and Materials Summit after the release of the statement, Delta CFO Paul Jacobson said Delta would strive to finish the quarter around the higher end of the revised earnings guidance. However, bearish sentiments prevailed at the end of the day, with shares closing the day down 0.9%.
Delta also raised the lower leg of its revenue growth projection for the quarter to 4-5%, compared to the earlier prediction of 3-5%.
AlphaStreet had earlier reported how various airline companies are grappling with the skyrocketing fuel prices, including rival American Airlines’ (AAL) decision to reduce toilet and seat sizes to accommodate more passengers and improve margins.