Delta joins other airlines in cutting earnings estimates due to rising costs

Delta on Thursday joined other carriers in lowering its profit estimates as costs rose.

The airline said it expects to report adjusted earnings per share of between $1.85 and $2.05, down from a previous forecast of between $2.20 and $2.50. Delta said it was paying more for fuel than previously expected this quarter, but added that maintenance costs were also more than it expected.

Delta expected unit revenues to decline by between 2% and 3% in the third quarter of last year, which is better than the previous estimate that sales could decline by up to 4%. The company also reiterated its full-year adjusted earnings estimate of $6 to $7 per share.

The company trimmed its quarterly guidance as the industry faces increased expenses as it enters a period of lower travel demand.

US carriers Spirit Airlines and Frontier Airlines warned Wednesday that rising costs will impact their profits in the summer quarter. Their lower forecasts followed similar guidance from Southwest Airlines and Alaska Airlines.

Delta shares rose more than 2% in premarket trading Thursday.