INTERNATIONAL – Delta Air Lines on Tuesday forecast a further decline in revenue growth per mile flown in the first quarter, hit by a partial government shutdown and worries about whether airlines can raise fares in an uncertain global economy.
Shares fell 2 percent to $46.80 before the bell.
Delta, the second largest US airline, reported quarterly revenue in line with analysts’ estimates and profit that topped he Wall Street consensus by 3 cents per share.
But Delta forecast that year-on-year growth in unit revenue, which compares sales to flight capacity, would be hurt in the current quarter by the timing of Easter, increasing foreign exchange headwinds, and the ongoing US government shutdown, which entered its 25th day on Tuesday.
Speaking on CNBC, Delta Chief Executive Officer Ed Bastian said the partial shutdown will cost the airline $25 million in lost revenue in January because fewer government contractors are traveling.