Delta Air Lines stocks fell by 6% before the opening bell on Thursday after the airline posted a quarterly revenue forecast that fell short of expectations. The company posted a revenue forecast of $13.9 billion to $14.2 billion for the fourth quarter, lower than the $14.22 billion estimate from analysts cited by LSEG data.
The Atlanta, Georgia-based airline also forecasted an adjusted profit for the quarter of $1.60 to $1.85 per share, with a midpoint above expectations of $1.71. “With an improving industry backdrop and strong demand for travel on Delta, we are positioned to finish the year strong,” Delta CEO Ed Bastian insisted.
The decision to lower the company’s revenue forecast came as a result of expectations of slower travel spending in the final quarter of the year. Delta moderated its seating capacity as a result, with annual domestic seat growth slowing to 1.5% in October and November from 5.5% in July, analysts at Bank of America confirmed.