Delta Airlines Shares fell about 9% on Friday after the company cut its 2024 profit forecast.
Delta forecast full-year earnings per share of between $6 and $7, down from its previous estimate of more than $7 per share by 2024.
Other major airlines including United, American and South west also fell according to the new estimate, released alongside quarterly earnings. United and American fell about 10% each, while Southwest fell more than 4%.
Delta ended 2023 doubling its quarterly profits as bookings for both corporate and leisure travel continued to recover from Covid-19 pandemic lows. The company reported $2.04 billion in net income in the fourth quarter, well above the $828 million reported in the same period a year earlier.
Delta CEO Ed Bastian said in an interview with CNBC that the airline has recovered nearly 90% of its travel demand from its pre-pandemic numbers. Bastian said he expects strong growth in international travel as Americans continue to set their sights on overseas destinations.
“We expect to see a turning point in the first part of this new year, in terms of our domestic unit revenue turning positive,” Bastian said.
Delta is coming off a strong 2023 in which shares rose more than 20%, but the stock is still below its all-time high of $63.16, reached in July 2019. The stock closed Friday at $38.47 per share.
Don't miss these CNBC PRO stories:
