Shares of Delta Air Lines Inc. dropped 1.7% in premarket trade Tuesday, after the air carrier cut its outlook for third-quarter passenger unit revenue and operating margin. Delta said in a statement that it now expects passenger unit revenue growth of 2% to 3%, compared with guidance of 2.5% to 4.5% growth provided in July, “as the recovery in domestic close-in yields has been slower than anticipated.” The company now expects third-quarter operating margin of 16.5% to 17.5%, compared with previous guidance of 18% to 20%, given higher fuel prices and close-in yield softness. The all-in fuel price is now expected to be in the range of $1.68 to $1.73, up from previous guidance of $1.55 to $1.60. Separately, Delta said its total system August load factor was 87.9%, up from 84.4% a year ago. The stock had lost 7.5% over the past three months through Friday, while the NYSE Arca Airline Index has shed 8.2% and the S&P 500 had gained 1.7%.
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