3 months ago
Stock Market

Delta Spooks Investors; Airlines Slump Midday

Investing.com - Despite a prediction of falling fuel costs, airline companies were under pressure on Thursday as investors doubted

Investing.com - Despite a prediction of falling fuel costs, airline companies were under pressure on Thursday as investors doubted the carriers can overcome tight margins.

Delta Air Lines (NYSE:DAL) slumped 4% despite forecasting a $300 million drop in fuel expenses next year. Increased fuel prices have weighed on airlines, but oil prices are now down 30% since hitting a four-year high in October.

But Delta, which is hosting its investor day, also predicted cost per seat mile to grow 1%.

Delta said its expects to earn $6 to $7 per share in fiscal 2019, which may be a bit concerning for the Street, with consensus estimates around $6.71. Revenue is expected to rise 4% to 6% with expectations around 5%.

Southwest Airlines (NYSE:LUV) dipped 2.5%, while United Continental (NASDAQ:UAL) fell 3.4% and JetBlue Airways (NASDAQ:JBLU) was down 1.6%. American Airlines (NASDAQ:AAL) lost 3.5%.

The S&P 500 Industrials index was roughly unchanged.