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Delta Air Lines Boeing 737-700 aircraft line up before departure at Princess Juliana International Airport on Saint Martin.
Fabrizio Gandolfo | Light Rocket | Getty Images
Delta Air Lines stock fell about 7% on Friday after the airline cut its 2024 revenue forecast.
Delta expects full-year earnings of $6 to $7 a share, below its previous forecast of more than $7 a share in 2024.
Other major airlines, including United Airlines, American Airlines and Southwest Airlines, also missed new estimates released along with their quarterly profits. United Airlines and American Airlines each fell about 8%, while Southwest Airlines fell more than 3%.
Delta Air Lines ended 2023 with a doubling of its quarterly profit as bookings for both corporate and leisure travel continued to recover from the lows caused by the COVID-19 pandemic. The company reported net income of $2.04 billion in the fourth quarter, up significantly from $828 million in the year-ago period.
Delta Air Lines CEO Ed Bastian said in an interview with CNBC that the airline’s travel demand has recovered nearly 90% from pre-pandemic numbers. Bastian said he expects international travel to increase significantly as Americans continue to look to international destinations.
“We expect a turning point in the first half of the new year in terms of our domestic sales turning positive,” Bastian said.
Delta Air Lines is coming off a strong 2023 in which its stock price soared more than 20%, but the stock is still down from its all-time high of $63.16 in July 2019. The stock was trading at about $39 per share on Friday.
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