Delta Air Lines shares fall on outlook
Delta Air Lines, all-sessions, fell after the company lowered its FY24 outlook. IGTV financial analyst Angeline Ong looks at the wider issues affecting the company and the US airline industry.
(AI Video Summary)
Delta Air Lines' share price falls on low FY24 outlook
Delta Air Lines is currently facing a decline in its stock price because it has lowered its expectations for profits this year. The company blames supply chain problems and uncertainties in the overall economy for this revised outlook. On trading platforms Delta's trading sessions have consistently been down by about 5%, and it has remained at that level.
In the first quarter, Delta predicts that it will earn between 25 cents and 50 cents per share, which is lower than what Wall Street experts had estimated, which was 38 cents per share. One important thing to note is that Delta, along with many other airlines, had been doing well in recent months because more people were traveling again, especially to catch up with family and friends whom they couldn't see during the Covid-19 pandemic. The holiday season, including Thanksgiving and Christmas, also contributed to this boost in travel.
Airline industry challenges
However, the airline industry is now facing various challenges. One ongoing problem is with Boeing, and this likely refers to the grounding of Boeing's 737 Max 9 series planes due to safety concerns. Moreover, the industry is currently dealing with the added difficulty of winter storms, which could lead to cancelations of about 1,200 flights by US airlines.
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