Delta Air Lines Inc (NYSE:DAL) shares dropped in early morning trading Friday after the airline cut its profit estimates.
The major US carrier cited elevated costs, supply chain delays and increased maintenance expenses as the reason for reducing its anticipated adjusted earnings per share to between $6 and $7 compared to over $7 it had previously targeted.
Despite the muted outlook, Delta navigated a successful holiday travel quarter, beating expectations with adjusted net income of $828 million, adjusted earnings per share of $1.28, and revenue of $13.7 billion.
Its fourth-quarter results showcased adjusted operating margin growth of 9.7%, reflecting a successful period for US air travel marked by record holiday passenger numbers.
Looking forward, Delta aims to capitalize on international travel growth, as evidenced by its order for 20 A350-1000 aircraft from Airbus, emphasizing the airline's focus on international expansion.
CEO Ed Bastian highlighted the airline's robust performance during the busiest holiday period in its history, emphasizing revenues at an all-time high, 20% above pre-pandemic levels. Bastian expressed optimism about the company's outlook for 2024, noting a record-breaking cash sales day on January 9.
Shares of Delta started trading Friday around 6.1% lower at US$39.70.