Delta Cuts Earnings Outlook as Fuel Costs Raise Rally Risks
The airline reported $17.6 billion in adjusted third-quarter revenue but lowered its full-year adjusted earnings outlook amid fuel-cost pressure.
Key takeaways
- Delta reported $17.6 billion in adjusted Q3 revenue on October 9.
- The company lowered its full-year adjusted EPS outlook to $5.10–$5.60.
- Delta had $21.08 billion in total debt, according to the article.
Delta Air Lines reported $17.6 billion in adjusted third-quarter revenue on October 9, but lowered its full-year adjusted EPS outlook to $5.10–$5.60. The company cited pressure from higher fuel costs.
The cut adds risk to a rally that had lifted Delta shares 20.6% year to date, according to the article. As of 17:56 UTC on October 12, the shares traded at $80.87, down 1.58% since the previous close.
The article said Delta had $21.08 billion in total debt and $8.13 billion in operating cash flow over the prior 12 months. It also reported a 9.18 forward P/E, while warning that the airline’s fuel sensitivity and capital needs pose risks.
The article’s central question is whether Delta can grow earnings enough to support the expectations implied by that valuation. It said elevated fuel costs and weaker margins could undermine the case for the stock.
This article was produced with the help of AI technology. Source: Yahoo Finance
