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NEW YORK (Reuters) – Delta Air Lines expects an additional $ 2 billion this year due to higher fuel costs, said CEO Ed Bastian on Wednesday.
Earlier this month, Delta attributed a 50 percent annual increase in fuel costs to a decision to reduce its second-quarter earnings projection to $ 1.65 to $ 1.75 a share from $ 2 a share earlier. . .
The increase in fuel costs has already weighed on the US airline's first quarter results and prompted its rival American Airlines to reduce its annual profit estimate in April.
Delta, which is Gol's partner in Brazil, and its competitors are expecting strong demand, higher airfares and reduced US tax burdens, which will eventually offset the impact of rising fuel prices.
Delta shares fell about 2% this afternoon to $ 50.04, outperforming the index that brings the shares of the US industry together.
(By Alana Wise)
Copyright Thomson Reuters 2018
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