Categories Earnings

Fuel hike forces Delta Airlines to tweak earnings guidance

Hit by an almost 50% hike in fuel prices, Delta Airlines today came out with a public update announcing an adjustment to its June-quarter outlook accordingly. According to the letter to shareholders, Delta now expects quarterly adjusted earnings between $1.65 and $1.75 per share. This is in line with a filing last month by the company, that we reported on.

Before the update in June, Delta’s prior prediction was $1.80 to $2.00 per share. The revised range was then below the average analysts’ expectation of $1.85 per share. Without adjustments, diluted EPS is expected to be $1.36-1.46 per share.

Delta Airlines updates Q2 2018 guidance

The carrier now sees total unit revenue for the quarter to improve by 4-5% from that of last year.

Even though the company says the leisure and business segments still receive strong demand, the market fuel price hike is expected to offset it. In addition to that, non-fuel costs might see a 3% hike year-over-year. Over the course of the quarter, Delta returned about $810 million to shareholders through share repurchases and dividends.

Elsewhere, Boeing closes in on Embraer

A major commercial jet alliance is in the works with Boeing (BA) and Embraer eyeing a strategic deal that would give the aircraft maker a significant advantage over European rival Airbus. An approval from the Brazilian government is imperative to the merger, which is still awaited.

RELATED: Boeing and Embraer move closer to major commercial jet alliance

Delta Air Lines reported better than expected Q1 2018 earnings, despite rising costs

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top