Delta Air Lines, along with other airlines, reduces profit estimates due to higher costs

At the Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, U.S., Delta Air Lines is facing challenges as it anticipates lower profits. The airline now expects adjusted per-share earnings between $1.85 and $2.05, down from the initial forecast of $2.20 to $2.50. Delta attributes this reduction to higher fuel costs and unexpected maintenance expenses.

In addition, Delta estimates a 2% to 3% decrease in unit revenue for the third quarter compared to last year, which is an improvement from their previous estimate of a 4% decline. However, the company maintains its full-year adjusted earnings forecast of $6 to $7 per share.

Like Delta, American Airlines, Spirit Airlines, and Frontier Airlines have also warned of lower profits due to increased costs in the summer quarter. These revised outlooks follow similar announcements by Southwest Airlines and Alaska Airlines.

In response to these developments, Delta’s shares have risen by over 2% in premarket trading on Thursday.