(Adds details, shares)
March 6 Delta Air Lines Inc on Monday
cut its operating margin forecast for the current quarter,
citing higher costs, and said it expected passenger unit
revenue, a closely watched revenue metric, to be at the lower
end of its forecast.
The No. 2 U.S. airline by passenger traffic Delta said its
margins will likely contract this year as the pace of revenue
improvement lags cost increases.
"Market fuel prices are tracking up about 55 percent for the
quarter, which is expected to be the greatest year-on-year
increase in 2017," the company said in an investor presentation.
Delta Air now expects operating margins to increase about
10-11 percent, less than 11-13 percent rise it had previously
The airline now expects passenger unit revenue, which
compares sales to flight capacity, to be about flat in the first
quarter ending March. (bit.ly/2msPAf6)
It had earlier expected passenger unit revenue to be between
flat and up 2 percent.
The company's shares were down 1.3 percent at $49.50 in
(Reporting by Ankit Ajmera in Bengaluru; Editing by Sriraj
Kalluvila and Savio D'Souza)