Delta Air Lines planes are seen at John F. Kennedy International Airport on the July 4th weekend in Queens, New York CityCHICAGO -Delta Air Lines on Thursday forecast lower profits in the current quarter than analysts had expected, with the carrier citing discounting pressure in the low end of the market.
The boom has failed to lift earnings at most of the U.S. carriers as excess industry capacity has undermined pricing power. Major airlines have scheduled about 6% more seats in the domestic market this month than a year ago, data from consultancy Cirium shows. While a shortage of planes due to production and engine issues was expected to drive up airfares, industry officials and analysts say a rush among airlines to capitalize on travel demand has caused overcapacity. The impact is more telling on ticket prices for main cabins.
The airline said its revenue suffered in the June quarter due to the upcoming Olympic Games in Paris. Analysts and industry officials expect the impact to persist in the current quarter as high costs and safety worries are discouraging many international travelers from visiting the French capital. Its reported an adjusted profit of $2.36 a share for the second quarter, in line with LSEG's analysts expectations. The company reaffirmed its forecast for a profit of $6 to $7 per share in 2024 with a free cash flow of $3 billion-$4 billion.Kevin O'Leary says court ruling will have 'major impact' on energy sector — how to get in on the action -- Costco Wholesale Corp.