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6-Sep-2017 8:49 AM

Delta updates 3Q2017 financial outlook; recovery in domestic close-in yields slower than anticipated

Delta Air Lines updated (05-Sep-2017) its 3Q2017 financial outlook, stating it now expects passenger unit revenue growth to be 2% to 3% as the recovery in domestic close in yields was slower than anticipated. The carrier also expects an average fuel price of USD1.68 to USD1.73 for 3Q2017, driven by the increase in market prices that began in late in Jul-2017. Delta expects the normalised cost per available seat mile (excluding fuel) to be up approximately 2% year-on-year. The carrier projects an operating margin of 16.5% to 17.5% in 3Q2017, compared to its previous guidance of 18% to 20%. Higher fuel prices and close-in yield softness combined resulted in close to two points of margin pressure for 3Q2017. [more - original PR]

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