Citing potential issues
in the supply chain and economic risk, Delta Air Lines has cut its 2024 profit
outlook.
But the carrier also
revealed it would purchase almost two dozen new planes from Airbus.
Delta was cautious in cutting
its profit margin for this year despite announcing that
it made $2 billion in the fourth quarter of 2023. The airline did say that
there is a bit of economic uncertainty to account for.
The company's stock price
fell more than six percent when it made its announcement.
Delta CEO
Ed Bastian said the company still had a goal of earnings of more than $7 a
share, but it offered a guarded outlook to the market in which it had "a
good deal of confidence."
"With
the amount of uncertainty that continues to exist within the supply chain, in
the maintenance arena, within the economic outlook, we wanted to be
prudent," Bastian told Reuters. "But that doesn't mean we can't
out-produce it."
Not after
coming off a terrific fourth quarter of 2023.
The
Atlanta-based airline took
home $2 billion in profit to close out last
year. The airline said it posted record revenue in 2023.
And the
airline is reinvesting in itself.
Delta will
purchase 20 Airbus A350-1000 widebody planes with an option for 20 more. Deliveries of the
aircraft, which will likely be for international travel, will come in 2026. It
will enhance the need for premium travel seats for the airline.
Delta has more than 100 widebody planes and a commitment for 32 more,
which will probably be used for the burgeoning Asia-Pacific market.
Delta would become the primary United States-based airline to use the A350-1000. It is currently operated by British Airways, Qatar
Airways and Cathay Pacific Airways.
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