Delta Air Lines shares fall on outlook
Delta Air Lines, all-sessions, fell after the company lowered its FY24 outlook. IGTV financial analyst Angeline Ong looks at the wider issues affecting the company and the US airline industry.
(AI Video Summary)
Delta Air Lines' share price falls on low FY24 outlook
Delta Air Lines is currently facing a decline in its stock price because it has lowered its expectations for profits this year. The company blames supply chain problems and uncertainties in the overall economy for this revised outlook. On trading platforms Delta's trading sessions have consistently been down by about 5%, and it has remained at that level.
In the first quarter, Delta predicts that it will earn between 25 cents and 50 cents per share, which is lower than what Wall Street experts had estimated, which was 38 cents per share. One important thing to note is that Delta, along with many other airlines, had been doing well in recent months because more people were traveling again, especially to catch up with family and friends whom they couldn't see during the Covid-19 pandemic. The holiday season, including Thanksgiving and Christmas, also contributed to this boost in travel.
Airline industry challenges
However, the airline industry is now facing various challenges. One ongoing problem is with Boeing, and this likely refers to the grounding of Boeing's 737 Max 9 series planes due to safety concerns. Moreover, the industry is currently dealing with the added difficulty of winter storms, which could lead to cancelations of about 1,200 flights by US airlines.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
