Delta Air Lines (DAL) has reported third-quarter financial results that missed Wall Street’s targets and lowered guidance due to soaring jet fuel costs.
The Atlanta, Georgia-based carrier reported earnings per share (EPS) of $1.72 U.S., which was below the $1.75 U.S. forecast among analysts.
Revenue in the July through September quarter totaled $17.59 billion U.S., which fell short of the $17.67 billion U.S. expected on Wall Street.
It was the first time in two years that Delta posted top and bottom-line misses.
Delta’s net income of $756 million U.S. was down 47% from $1.42 billion U.S. a year earlier.
Management blamed the poor results on the rising cost of jet fuel, which has more than doubled this year as the Iran war pushes energy prices higher.
The airline also lowered its forward guidance due to rising fuel costs. Delta forecast full-year earnings per share of $5.10 U.S. to $5.60 U.S.
The new earnings outlook is lower than its previous forecast of $6.50 U.S. to $7.50 U.S. a share that it posted in July of this year.
Delta also cut its free cash flow outlook for the year to $2.5 billion U.S. from $4 billion U.S. in July. Management said they’re dealing with a $6 billion U.S. increase in fuel costs this year.
Delta and other U.S. airlines have been passing the cost of rising jet fuel onto consumers in the form of higher airfares, which is turning off some travelers.
The U.S. inflation report for September showed that airfares in America were up 23% last month from a year earlier.
DAL stock is down 3% following the carrier’s latest financial results and trading at $79.61 U.S. per share.
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