Such is the nature of the stock market that barely a breath can go by without it affecting share price.
Delta Air Lines knows.
The Atlanta-based carrier raised its revenue outlook for this second quarter - which ends on June 30 - and said that the adjustment will put it at 2019 pre-pandemic levels. That is largely triggered by a pent-up demand by travelers to get back to vacations and family visits, despite inflation and a surge in prices for airline tickets, lodging and car rentals, Reuters News Service reported.
Delta's stock opened trading at $42.13 a share this morning, Wednesday, June 1, and rose to $42.30.
By 1 p.m., the stock was down almost five percent, to $39.70.
That was after CEO Ed Bastian said the airline's own costs are likely to rise due to the price of jet fuel and because Delta, like most major U.S. carriers, has cut back its summer schedule to avoid delays and cancellations due to staff and pilot shortages.
"We're at the point now, we're not going to grow any more, probably through the end of this year," Bastian said at the Bernstein Strategic Decisions Conference, according to Bloomberg News.
The media outlet noted that Delta's expectation of paying about $3.35 a gallon for fuel oil has now ballooned to a current $3.70 per gallon, which Bastian called a "historic level."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
