Going by Delta’s not-so-impressive revenue performance, it seems aviation firms might not have benefitted from the recent fall in gasoline prices. The company’s back-to-back downward revision of its revenue estimate has dampened investor sentiment, and as a result, all the major airlines witnessed a selloff Thursday.
Delta, meanwhile, narrowed its earnings outlook to the range of $1.25-$1.30 per share, slightly lower than analysts’ forecast. It is estimated that capacity and traffic grew 4% and 3% respectively during the three-month period. Nevertheless, experts are of the view that Delta’s fourth-quarter performance does not necessarily reflect the broader industry trend.
Delta’s shares are currently in the correction mode, after climbing to a record high in November. The stock lost about 19% over the past twelve months and closed Thursday’s regular session down 9%.