Delta Air Lines Inc (NYSE:DAL) shares dipped more than 4% to about $59 in midday trading on Thursday after the air carrier said its third quarter revenue is projected to increase 2% to 4% year over year compared with its previous forecast of flat to up 4%.
Analysts expected 2.3% growth on average, according to data compiled by Bloomberg.
Delta cited operational performance, demand trends, and industry supply rationalization as factors supporting its revenue outlook.
The company also said it plans to provide a record number of more expensive seats next year as it struggles to fill economy class seating, particularly on domestic routes.
Delta president Glen Hauenstein told a Morgan Stanley Annual Laguna Conference on Thursday that the carrier now receives more than 50% of its revenue outside of its main economy-class seating.
“Now that we’re less reliant on main cabin, we don’t need the main cabin to be positive to post positive returns,” Hauenstein said, as reported by Bloomberg.
Delta Air Lines shares have climbed about 34% over the past 52 weeks.